THAN a MARKET How German Companies Are Growing Roots in Chinese Society

2019

MORE THAN A MARKET How German companies are growing roots in Chinese society

Vertretungen der Bundesrepublik Deutschland in der Volksrepublik China

CONTENT

PAGES

MAP OF ENGAGEMENT 04 – 07

INITIATORS 08 – 09

GREETING BY THE AMBASSADORS 10 – 11

MORE THAN A MARKET INITIATIVE 12 – 15

SPECIAL REPORT: CSR AND GENDER EQUALITY 16 – 25

CASE STORIES 26 – 67

CASE ABSTRACTS 68 –105

IMPRINT 106 – 107

REFERENCES 108 – 109

3 MAP OF ENGAGEMENT

HARBIN

CHANGCHUN

SHENYANG

HOHHOT BEIJING TANGSHAN DALIAN

YINCHUAN LAIYUAN TIANJIN TAIYUAN SHIJIANZHUANG JINAN XINING LANZHOU BENGBU CHUNHUA XI‘AN ZHENGHOU CHANGZHOU DEYANG TAICANG WUXI NANJING NANTONG CHENGDU SUZHOU HEFEI LESHAN KUNSHAN SUINING WUHU WUDU WUHAN SHANGHAI CHONGQING HAHGZOU NINGBO NANCHANG

HEQING CHANGSHA GUIYANG FUZHOU

PUCHEN KUNMING LIUZHOU GUANGZHOU NANNING SHENZHEN

FOSHAN HONG KONG MACAU

HAIKOU

4 CASE STORIES: PAGE 28 – 66 CASE ABSTRACTS: PAGE 70 – 105

P 28 BMW China Automotive Trading & P 50 Merck Holding P 70 Adidas BMW Brilliance Automotive Clean Water Project adidas School Football Program BMW China Culture Journey Shanghai Shanghai Beijing

P 52 Metro China P 70 Aichelin Heat Treatment Systems P 30 Boehringer Ingelheim Metro Green stores “Window on the World” for Little Swan Public Develop veterinarian talents in China Shanghai Welfare Elementary School Shanghai Beijing P 54 Oase Living-water P 32 Bosch (China) Investment Helping poor students in the countryside P 71 Alba Berlin Basketballteam Bosch University Program Taicang Language & Basketball Shanghai Hong Kong P 56 Sharehouse P 34 Brugger Magnetsysteme Pfrang Association P 71 B. Braun Medical Increasing sustainability in magnet supply chains Nanjing “Run for Love” B. Braun Half-marathon Various locations charity run P 58 Siemens China Shanghai P 36 E.G.O. Components Siemens I-Green Education Program – Summer Camp for left-behind children University Student Summer Project P 72 BASF Taicang Beijing BASF’s Goodwill Teacher program Shanghai P 38 Edscha Automotive Technology P 60 SIG Combibloc Edscha moves – development aid for Yunnan kids VOC Emission Reduction Project Shanghai Suzhou P 72 Bayer China Bayer Children Care Program Shanghai P 40 Freudenberg Chemical Specialities P 62 Taicang Inclusion Factory I Love Robots program Flex Mechanical Inclusive Factory Shanghai Taicang P 73 Beiersdorf We care – Education, Children, Youth P 42 German School Shanghai-Hogqiao P 64 Volkswagen Automatic Transmission Shanghai Project Illumine + Eye care outreach Work2Work Intern Program Shanghai Tianjin, Beijing P 73 BHS Corrugated Machinery Dual Vocational Education Training Program P 44 GSN Electronics P 66 Wacker Chemicals Shanghai GSN Living Wage project Long-term reading-companion Shanghai Shenzhen P 74 BOC (Linde) Hydrogen fueling stations for cleaner P 46 Hape Holding buses and cars in China We Care We Share Shanghai Ningbo P 74 Bosch Investment P 44 Henkel Investment Deploying CO2 reduction and energy Flying Hope efficiency in Bosch China Shanghai Shanghai

5 MAP OF ENGAGEMENT

CASE ABSTRACTS: PAGE 70 – 105

P 75 Bosch Rexroth P 80 Continental Automotive Systems P 85 Fiducia Management VOCs treatment system LEGO class Fidu-Share Beijing Shanghai Shanghai

P 75 Bosch Rexroth P 80 Continental Automotive Changshu P 85 Grand Kempinski Hotel GoGreen @ PkP Corporation Social Responsibility @HBS Kick Off – Football Project Beijing Changshu Plant China Shanghai Changshu

P 76 Brose P 86 Haering Precision P 81 Continental Tires Million Tree Project Sino-German Friendship Kindergarten RTO air treatment project Shanghai Taicang Hefei

P 76 Brose Changchun Automotive Systems P 86 Harmony Shanghai P 81 DHL Global Forwarding Sponsor Changchun Child Welfare Home International Community Dance Project GoGreen - One, Two, Tree! THE FOUR SEASONS Changchun, Beijing Shanghai Shanghai

P 77 Brückner P 82 Dr. Beckmann Delta Pronatura Yes, we care “Orange Backpack” Non-Profit Program P 87 Hella Corporate Center Suzhou Nanjing Hella Library Project Shanghai P 77 Buurtzorg Neighboorhood Care Asia P 82 Dräxlmaier Group Better care at home at lower cost Youth Skills Upgrading Programme P 87 Hella Corporate Center Hong Kong Shenyang, Beijing Hella University Cooperation Shanghai

P 78 Celanese P 83 Duravit Handmade Bears for Shanghai Baby Home Sustainable Development Education P 88 K.D.F. Distribution Shanghai Chongqing, Guangzhou Lupin Foster Shanghai

P 78 Century 3 P 83 Evonik Industries Better schools and better homes Evonik contributes to a sustainable P 88 Kaercher CleaningTechnology Shanghai development in China Double Ninth Festival Activity for Elders Changchun, Nanning Changshu P 79 Changsha Bach’s Bakery Employment of people with hearing impairment P 84 Faurecia Clean Mobility P 89 Kern-Liebers Changsha Clean Mobility Month Taicang German Industrie Meister Training Shanghai Center (DTIT) Taicang P 79 Continental Automotive Changchun (CPT Automotive) P 84 Festo Government-Enterprise Cooperation Partnership with WorldSkills for developing P 89 Knauf New Building Material and Precision Poverty Alleviation occupational education in China Knauf Blue Changchun, Beijing Shanghai Wuhu

6 P 90 KPMG P 95 Ningbo Silk Trend Garments P 101 Taicang German Technician Training Center CSR Innovation Project Competition POLYMAX Summer Kindergarten TTT (Train The Trainer) for Taicang Sino-German Shanghai Ningbo Handicapped Workshop Taicang P 90 Lanxess Chemical P 96 NOK-Freudenberg Oilseal Special care for special children Lanxess-Goethe-Institut partnership P 101 Taicang Roundtable Changchun, Beijing Shanghai Sino-German Cultural Exchange Taicang P 96 Nord-Lock P 91 Mann+Hummel Filter Nord-Lock China started sponsoring Drawing Charity Cycling Event Courses for adults with special needs P 102 Taicang Roundtable Shanghai Shanghai Establishing Taicang Engineer Association Taicang P 91 Mann+Hummel P 97 Porsche Motors Wix Power Porsche “Empowering the Future” Shanghai Young Chinese Artist Cultivation P 102 Thyssen Elevators Shanghai TkEC Sunshine 365 Fund P 92 Marquardt Switches Shanghai P 97 Pulcra Speciality Chemicals The Power of Giving Be your strong support while you are growing Shanghai P 103 thyssenKrupp Elevators Shanghai The Frozen Boy’s Loving Bookstore Project P 92 Merck Display Materials P 98 Renyi Yong Chun Kungfu Center Shanghai Green Crystal Project Violence free zone- school Shanghai Guangzhou P 103 Trolli Guangzhou Confectionery Power & Gas energy saving implementation P 93 MollerTech Automotive Parts P 98 Rose plastic Guangzhou Environmental Protection Rose Plastic R3 (Reduce, Recycle, Reuse) Langfang, Beijing Kunshan P 104 TÜV Rheinland P 93 MR China P 99 SAIC Volkswagen Automotive Developing the Next Ambassador of Green Living MR primary school library Waste Management Pilot Project Taicang Shanghai Shanghai

P 104 TÜV Rheinland P 99 SAP Labs P 94 Mubea Automotive Component I Flying – rural teacher training Youth Health Care – Taicang Kids Football SAP Labs China Digital Social Innovation for Sustainability Shanghai Taicang Shanghai P 105 Wago Electronic (Tianjin) P 94 Mubea Automotive Component P 100 Schaeffler Holding Caring for special groups, together with love Mubea-Helps-Foundation “Electric Racing Dream” comes true Tianjin, Beijing Taicang Shanghai

P 95 Ningbo BRANOpac P 100 Siemens P 105 ZAMA Precision Industries Shanghai Young Bakers Electricity Safety for Traditional Ancient Village Zama Vocational Training Ningbo Dalian, Beijing Huizhou, Guangzhou

7 INITIATORS

SHAPING THE WORLD TOGETHER LIZ MOHN, VICE-CHAIRWOMAN OF THE BERTELSMANN STIFTUNG, EXECUTIVE BOARD

The world is undergoing great transformation. The major trends of Cooperation means that not only must policy makers and civil soci- globalization and multilateralism, demographic and technological ety get involved in shaping a new tomorrow, the business community change are putting increasing pressure on established institutions of must do so as well. Since business actors are now, more than ever, global governance – namely, pressure to adapt to the consequences local as well as global actors, the role they play when it comes to of these trends. At a time when technology could finally realize the employees, customers and partners can never be overestimated. The promise of connecting the world into one global village, some forces More than a Market initiative is focusing on the German business are disconnecting the networks of trust and cooperation that have actors in China that spare no effort when it comes to contributing to grown over the years. All of these challenges have created an atmo- and shaping the society around them for the better. They do so via sphere of uncertainty. Both China and Germany are looking for new their culture of social responsibility, which also includes responsible solutions to tackle these developments. corporate leadership.

Facing unstable times, we must never forget that times can change The German companies’ efforts would never have been successful – or rather: They can be made to change, they can be shaped. How- were it not for the special relationship between China and Germany. ever, in a world of such complexity, there is never just one adequate Based on respect, trust and values, the Chinese-German partner- answer. Effective and practical initiatives that support new visions ship has been thriving for decades, resulting in fruitful collaborations can only be implemented if the interests, expertise and contributions benefitting many. of all societal actors are included from the very beginning. No one country on its own can face any of the multiple challenges we are The More than a Market initiative, which is now in its fourth year, currently confronted with. If we long for a peaceful and just world illustrates many of the great examples stemming from this partner- with more social and economic stability, we have to communicate ship. The initiative is an attempt to show what can happen when values, take responsibility and build trust in cooperation. people from different nations work together to help others, create a better world and shape the future.

8 INITIATORS

LEADING BY SUSTAINABLE EXAMPLE SIMONE POHL, JENS HILDEBRANDT MAXIMILIAN BUTEK – GERMAN CHAMBER OF COMMERCE IN CHINA

2019, the Chinese Year of the Brown Earth Pig, marks a joint com- positive footprint. This year’s Forum and Awards Gala highlights the memorative year in Sino-German history. We look back at 70 pros- successful measures that companies have implemented to manage perous years since the proclamation of the People’s Republic of these shifts and how companies can incorporate CSR strategies into China, and the founding of the Federal Republic of Germany. As their company DNA. Initiated projects range from increased educa- the saying goes, “good things come in pairs”! During the last de- tional access to employment opportunities for people with special cades, foreign companies – and German companies, our members, needs, from combating poverty to engaging in culture, from sports in particular – increasingly invested in China and thereby giving back programs for left-behind children to environmental protection, and through the creation of jobs, shared knowledge and enriching the many other matters which lay at the heart of China´s sustainable de- local market with goods and services of “Made in Germany” quali- velopment. ty. The German Chamber of Commerce in China is honored to have been serving and representing its more than 2,300 members in the Constant change might ever be around the corner in the Middle process of this ongoing development. Kingdom, but a lasting positive impression can only be achieved through a shared vision, trust, nurturing mutual benefits for both Building upon this solid foundation, we have been a strong advocate economies and their respective people. It is key to learn from one for German companies to strengthen their social engagement in another and to provide mutual support to lead the way into a more Chinese society to leave a lasting impact for generations to come. sustainable, inclusive and overall better future for both our ambi- Therefore, the German Chamber of Commerce and its members tious societies. naturally regard China as “More Than a Market” and proudly engage in the thusly named joint initiative for corporate social responsibility We would like to extend our utmost thanks and gratitude to all par- (CSR). For the fourth year in a row, we have observed an increase ticipating members and the incredible support of their employees, in project submissions, which fill us with joy and shows that the ini- who have done an outstanding job in filling our initiative with life! It tiative is gaining importance among our members. As companies is gratifying to observe the significant impact “More Than a Market” in China face changes in their business models, innovation ecosys- has had so far and we hope that more and more members will con- tem and the regulatory environment, CSR programs are becoming tinue to support us for years to come. We are proud to showcase all an essential tool for engaging with local communities and leaving a these inspiring projects in this publication. 9 GREETING BY THE AMBASSADORS

GERMAN COMPANIES TAKE RESPONSIBILITY FOR THE SOCIETY IN WHICH THEY OPERATE DR. CLEMENS VON GOETZE, AMBASSADOR OF THE FEDERAL REPUBLIC OF GERMANY TO THE PEOPLE’S REPUBLIC OF CHINA

China is Germany’s most important trading partner. But China is in- port of education, protection of the environment and work safety. deed much more than a market. China is an indispensable partner The Corporate Social Responsibility shown by the companies is a key for tackling global questions as climate change and a rules-based element at the heart of the German social market economy model, world trade system. Bilaterally, Sino-German relations are not only based on a long tradition even dating back to the craft workshops close between the political leaders and our business communities, and guilds of the Middle Ages. but thrive on many fields, in science, culture and sports, to name just a few. Growing numbers of visitors and students from China to Ger- Also today, in the age of globalisation, companies make crucial con- many and vice versa show that Germans and Chinese are interested tributions to resolving global challenges like climate change, the in each other. Without any doubt, our countries also have their dif- fight against poverty and the protection of human rights. Most of the ferences, politically as well as economically. The more important it is decisions taken by companies in fulfilling their social responsibility to continue to foster understanding between our countries, act upon are not making the headlines. They are part of the management rou- our values and principles and build trust. tines of responsibly led companies. “More than a Market” gives us a chance to shed a bit more light on these contributions of companies “More than a Market” shows that German companies active in China to the common good. do not only look for short term profits but do indeed want to contribute to further German-Chinese ties and mutual understanding in a I am confident that “More than a Market” will continue to inspire much broader way. “More than a Market” highlights how German others to develop more good practices and to represent a time-hon- companies take responsibility for the society in which they operate. oured German tradition. I would like to congratulate the German It showcases impressive examples of how they support local com- Chamber of Commerce and Bertelsmann Stiftung on this important munities, engage with their supply chain partners and take care of initiative and wish it all success for the future. people on the side-lines through charitable work or projects in sup-

10 GREETING BY THE AMBASSADORS

CHINA AND GERMANY ARE WORKING TOGETHER TO REACH THE GLOBAL GOALS FOR SUSTAINABLE DEVELOPMENT WU KEN, AMBASSADOR TO GERMANY OF THE PEOPLE’S REPUBLIC OF CHINA

In 2018, the bilateral trade volume between China and Germany During the last 41 years of reform and opening, China has reached €19.3 billion, which was 9.4 percent above the previous become a stabilizing anchor for global economic growth and has year’s level. That makes China Germany’s largest trading partner for made outstanding contributions to reaching the global goals for the third year in a row. Germany’s companies have benefitted from sustainable development. The share of people worldwide living in China’s policy of reform and openness, as have others. According absolute poverty has fallen from almost 40 percent in the 1990s to to media reports, DAX30 companies have 700 business locations in a current level of some 8.6 percent. China has helped more than 700 China, and the revenue generated there by these firms accounts for million people escape poverty, thereby making a major contribution some 16 percent of their total revenue. All in all, German businesses to the global fight against poverty. It is clear, however, that China’s earned approximately €200 billion in China in 2018 – a new record. various regions are not all developing at the same rate and that Many companies even generate more turnover in China than in considerable differences exist between urban and rural areas. Germany. German businesses in the automotive, insurance and More than 16 million people in the countryside still live in absolute banking sectors in particular are benefitting from China’s new poverty, and alleviating poverty remains a difficult challenge. measures to increase openness. The ongoing improvement of the Chinese business environment has not only led more German We therefore welcome German companies to continually develop companies to invest in China, it is also inspiring German businesses the Chinese market. At the same time, we hope that these firms will already active in the country to continually increase their level of assume social responsibility within the community and will work investment. together to achieve the global goals for sustainable development.

11 12 MORE THAN A MARKET INITIATIVE

MORE THAN A MARKET AN IMPACTFUL PLATFORM FOR COLLABORATION AMONG GERMAN COMPANIES IN CHINA

China is Germany’s central trading partner in Asia. More than 5,000 Since 2015, the More than a Market initiative has shown how Ger- German companies are present there. Exports to the People’s Re- man companies are increasingly dealing with social challenges in public account for around two percent of Germany’s gross domes- China and how they are reacting beyond their immediate business tic product. The companies’ global business also stands or falls with interests to those challenges, which are either not addressed at all their success in China. After all, production processes, supply chains or only inadequately by the state and other local actors. This means, and sales structures are deeply interwoven. For the German export almost by definition, that German companies are bringing social in- industry, China is much more than just a market. novations to China.

For China, conversely, Germany is more than just a supplier of in- The More than a Market initiative was launched in 2015 by the Ger- vestment and technology. As part of its reform policy, China is en- man Chamber of Commerce in China and the Bertelsmann Stiftung. gaged in an intensive debate about the role companies can play in Its founders had a clear vision: to shine a light on how German com- society. Germany’s social market economy is a much-discussed panies engage in Chinese society and to support them in developing model for creating social balance, enabling equal opportunities and more and better social projects. strengthening social cohesion. Responsible entrepreneurship plays a central role here because it is an important instrument within the social market economy. It can have a positive impact on society if it creates win-win situations with benefits for the society and for the company.

13 MORE THAN A MARKET INITIATIVE

Much has happened since the start of the initiative. For example, the This publication documents the social projects that applied to par- More than a Market Awards were launched and are now being given ticipate in the 2019 More than a Market Awards. We hope it will be for the fourth time in May 2019. The recipients have been select- an inspiration to all those designing, launching or implementing so- ed from the more than 100 social projects that applied to partici- cial projects. By sharing our learnings we continue to work towards pate. The companies driving these projects account for more than a sustainable future for all. Since the intention of the initiative is to 500,000 jobs in China, around half the jobs created in the country continue expanding the activities German companies engage in on by German businesses. This reflects German companies’ strong and behalf of Chinese society, we invite more companies and individuals sincere commitment to contributing to China’s sustainable develop- to join the More than a Market initiative. There are many ways to ment. get involved! We are looking forward to learning from you, helping you to connect with peers and partners, and supporting you in your Due to the support of many like-minded and socially engaged peo- passion for working towards a better society. ple, the More than a Market initiative has established itself as a vis- ible, impactful and outstanding platform for collaboration among German companies, enabling them to generate valuable support for good causes in China. There is still a lot to be done and we are aware of the learning journey that lies ahead of us.

14 MIDDLE EDUCATION CLASS THE EMPLOYEES SOCIETY

POLITICAL THE SOCIAL AGENDA MARKET DIVIDE CUSTOMERS COMPETITORS

THE COMPANY

VALUE DIGITALIZATION SHIFTS

SUPPLIERS AUTHORITIES

ENVIRONMENT URBANIZATION

15 SPECIAL REPORT

CORPORATE SOCIAL RESPONSIBILITY FROM A GENDER EQUALITY PERSPECTIVE: HOW GERMAN COMPANIES CAN CONTRIBUTE TO SOCIAL CHANGE IN CHINA

Women represent 48.5% of China’s population (World Bank, 2017). In fact, for the casual observer, it looks as though gender equality does It is estimated that they contribute as much as 41% to the country’s not present much of a challenge in China’ workplaces. A first look at GDP, a higher share than in most regions (McKinsey Global Institute, the numbers seems to bear out the perception that the Chinese cor- 2015). This figure does not account for the immense value creation porate world is doing just fine on this front. For instance, female par- from unpaid labor: Chinese women take on the bulk of unpaid child- ticipation in the workforce in China is higher than the global average care and elder-care work, spending much more time than men do on – and higher than in some of the most developed economies, including these activities. the United States (World Bank, 2018). In addition, China is home to more female billionaires than any other country (BBC, 2018). Women are also consumers and entrepreneurs. Take China’s trillion-dollar e-commerce market: They spend more, shop more frequently and own over half of the online stores on Taobao, the country’s biggest online marketplace by traffic (Chinadaily, 2016; KEY RECOMMENDATIONS AliResearch, 2015). With the rise of the “she economy,” women are FOR COMPANIES IN CHINA playing an outsized role as end users in China, deciding over the success or failure of products in the market. Chinese women are also Investing in building women’s leadership and better educated than their male compatriots on average, outnum- entrepreneurial skills bering them in tertiary education. Creating a gender-equal workplace

Given women’s centrality to China’s economy, foreign companies Implementing family-friendly policies such as will naturally want to tap into this pool of consumers and talent so remote working they can be successful in the world’s most competitive market. As a Empowering women in supply chains result, understanding women’s perspectives and ensuring that they Challenging gender stereotypes through marketing enjoy equal opportunities in the workplace is not just ethically and and advertising morally desirable. It is a business strategy.

16 Yet the picture that emerges on closer inspection is quite different. For many companies in China, gender diversity is far from being regarded as a strategic priority. In recruitment, gender-based dis- AN EFFECTIVE APPROACH TO GENDERING CSR crimination remains widespread, with better educated and childless Leadership commitment at CEO level women experiencing it more acutely (Technode, 2017b; People’s Daily, 2016). Job ads reinforce gender stereotypes to a shocking Mindset shift from philanthropy to gender degree and often overtly specify male applicants – even though this mainstreaming is illegal in China. Sadly, this is not the exception, it is the norm, and Gender perspective in company operations and it is the case in many of the country’s top companies, such as Aliba- stakeholder relations ba, Tencent and Baidu, and even in the civil service (Human Rights Organizational and cultural shift Watch, 2018). Clear targets, policies, processes and performance Women are also largely absent from Chinese boardrooms and man- reviews agerial positions, a sign that career development and leadership op- Sex-disaggregated data in company reporting portunities remain scant. In addition, the average income of women in China is much lower than that of men – about 67 percent in cities, Careful choice of partners and a mere 56 percent in rural China (All-China Women’s Federa- Smart use of digital technologies tion, 2014; OECD, 2017). Leaving questions of fairness aside for Willingness to address bias in key people processes the moment, it seems clear that this state of affairs leads to serious economic inefficiencies. Female talent in China is an underused re- Inclusion of marginalized groups source. Companies, not least foreign ones, which recognize this and act on it can benefit significantly. RESOURCES FOR COMPANIES Corporate social responsibility (CSR) can be an effective instrument UN Women’s Empowerment Principles (WEPs) to advance and leverage gender equality, both as a corporate com- and Reporting Guidance mitment to the community and as an organizational practice that shapes business operations on all levels. Through activities rang- IFC-GRI guide Embedding Gender in Sustainability ing from traditional philanthropy to gender-sensitive and inclusive Reporting stakeholder relations, company policies and reporting, German com- EDGE Standard and Certification panies in China have the opportunity to boost their competitiveness and profitability – while making a long-term impact on the lives of their employees, the wider corporate world and society at large.

This More than a Market report is meant to shed light on the economic dividends of women’s empowerment and on the challenges Chinese women are facing in and outside the workplace. It will also highlight some examples of best practice and suggest concrete steps German companies can take to close the gender gap.

17 SPECIAL REPORT

The business case for gender equality Emerging technologies such as artificial intelligence (AI) are a further factor of change pressing in the same direction. The digital age is set A growing body of evidence shows that gender equality correlates to revolutionize the nature of work. It will reward those organiza- with economic growth and profitability. For example, if China tions that are able to nimbly adapt their processes and culture in an matched the progress towards gender parity of the fastest-im- employee-oriented manner – and this includes female employees. In proving countries in its region, this could boost the Chinese GDP addition, it appears that in a digitally mature, inclusive and risk-taking by US$2.6 trillion annually by 2025, a 13% increase compared to environment, women are slightly more likely than men to produce a “business-as-usual” scenario (McKinsey Global Institute, 2018). greater financial outputs and to invest more in their organizations, Worldwide, advancing gender equality can add up to US$12 trillion provided that the leadership model, pipeline and development are to global growth (McKinsey Global Institute, 2015). open and clearly defined (Deloitte and Lean In China, 2018).

Companies investing in a gender-diverse workforce and leadership This is to say that leveraging female talent does not simply mean “hir- also display demonstrably better financial returns. A study con- ing more women.” While measures such as Germany’s board quotas ducted on Fortune 500 firms for 19 consecutive years, for instance, may help to boost senior appointments, payoffs of sustained policies showed that the 25 companies with the best record in promoting that facilitate talented women to rise throughout corporate ranks women to executive positions were between 18% and 69% more are demonstrably higher (PIIE, 2016). A genuine commitment to in- profitable than the median Fortune 500 competitors in their indus- clusion and a willingness to listen on the part of the company’s lead- tries (Adler, 2001). A higher female representation on boards also ership is equally essential in order to fully unleash the potential of improves economic performance (Catalyst, 2011) and social respon- female employees (Harvard Business Review, 2013). Understanding sibility (Setó-Pamies, 2013). the barriers Chinese women face and the demands they articulate is thus a necessary first step if companies are to profit from taking One explanation might be the greater diversity of perspectives dif- gender equality seriously – both economically and with regards to ferent individuals bring to decision-making. Innovative solutions of- developing gender-sensitive CSR strategies. ten emerge when different voices can challenge each other. Employ- ee satisfaction may be another factor: People are the most valuable asset of any corporation. Employees – including female employees – Chinese women and economic empowerment: Old gender norms, feel more motivated to live up to their potential at work if they know new demands that they are treated fairly and their contribution is valued. Whatev- er the reason for the positive correlation between gender equality In 2018, China’s position in the World Economic Forum’s Global and business performance, the effects are simply remarkable. This Gender Gap ranking fell for the ninth consecutive year, coming in at is why smart companies are increasingly realizing that diversity and 100 among the 144 countries listed (WEF, 2018). Just over a decade inclusion are real sources of competitive advantage, correlating ago, China was ranked 63rd.This is a sign that women have been strongly with profitability and value creation (McKinsey, 2018). In missing out on the benefits of the country’s rapid economic reforms. China’s rapidly changing market, talent management and retention, The severe lack of political participation is to blame for this trend, as consumer orientation, company reputation and employee happiness is the incredibly skewed sex ratio at birth – a byproduct of decades are all unusually challenging, and a commitment to gender equality of family planning and selective abortions encouraged by a cultural is a strong predictor of how successful companies will be at finding preference for sons. But there is still more to this: The survey also solutions for these challenges. found that women earn 36% less than men for doing similar work,

18 THE PROBLEM IN CHINA … AND WORLDWIDE

37 – Number of places China fell in the WEF’s 41.9% – Global gender gap in economic Global Gender Gap ranking (2006–2018) participation and opportunity

+60% – Share of unpaid work done by women 34% – Managerial positions held by women compared to men +50% – Women’s time spent on unpaid work 36% – Women’s pay for similar work compared compared to that of men to men’s Gender wage gap 70% – Female workers who were sexually harassed in Guangdong’s factories Gap in access to financial services

9% – Decline in women’s labor force participation between 1990 and 2013

9.4% – Percentage of female board directors of publicly traded companies

20% – Firms with women as top managers

WHY GENDER DIVERSITY MATTERS FOR COMPANIES IN CHINA … AND WORLDWIDE

US$2.6 trillion – Potential GDP gain from US$12 trillion – potential contribution of gender equality gender equality to global growth

41% – Women’s contribution to China’s GDP, +18–69% – Profitability of firms with female compared to global average of 37% executives compared to their competitors

Over 50% – Taobao stores owned by women Better economic returns and greater social responsibility Nearly 70% – Share of women managing family finances Greater consumer attraction and talent retention, better reputation

19 SPECIAL REPORT

a sign that women do not only cluster in low-paying industries and ing a career (Hong Fincher, 2013). According to surveys conducted low-ranking positions, they are also discriminated against despite in 2000 and 2010, the notion that women should marry well and protective legislation. In addition, only one out of five firms have focus on family instead of following professional ambitions has be- women in their top management. come more popular (Sixth Tone, 2018).

But China’s performance in the ranking also reflects an underlying These conservative gender norms are prevalent across society at structural issue: The double burden that continues to constrain Chi- large and infiltrate the corporate world. They combine with – and nese women’s potential, as they are still seen as natural caregivers largely explain – other factors, such as a retirement age that is five by a patriarchal culture. On top of working days that are on average to ten years lower for women, very limited paternity leave and a re- 44 minutes longer, women take on over twice as much unpaid house- cent “two-child” campaign which is further encouraging employment work and care work as men do. This is especially true for mothers discrimination (Economist, 2018). This makes the lack of work-life in the 25-34 age group and who have children under the age of six, balance an increasingly pressing concern (Deloitte and Lean In Chi- 72% of whom were employed in 2010 (ACWF, 2011). Not surpris- na, 2018; Zhaopin, 2018). Many capable and talented women are ingly, missed career advancement opportunities due to childbearing being forced to choose between family and career, while employers are the biggest obstacle to women gaining promotion (China.org.cn, are hesitant to hire and promote them as they fear that they might 2018). take maternity leave twice. Sometimes recruiters simply see women as less suitable for certain positions (Human Rights Watch, 2018). These disparities risk hurting the Chinese economy. At a time when These stereotypes may also hurt women’s confidence in their own the Chinese workforce is shrinking and the population is aging rap- abilities, further hampering their career advancement. idly (Financial Times, 2019), more and more Chinese women opt out of the professional world. In fact, women’s share of the labor force, On top of these types of discriminations, social norms make the while still very high, has declined steadily since 1990, following rap- workplace less inclusive and safe for many women. A 2017 survey id economic transformations and marketization (ILO, 2015; OECD, by the recruitment platform Zhilian Zhaopin found that 80% of fe- 2017). Reforms have brought tremendous prosperity, but also exac- male respondents had experienced sexism at work (Zhaopin, 2018). erbated social inequalities. Diminished employment opportunities, a In 2013, up to 70% of female workers in Guangzhou’s factories had widened gender wage gap, lack of subsidized childcare, and a resur- been sexually harassed (China Labor Bulletin, 2018). Gender roles gence of traditional gender norms and stereotypes all make it par- at home exacerbate this problem. As a study on the impact of wide- ticularly difficult for Chinese women to maintain a healthy balance spread gender-based domestic violence (DV) on the workplace has between work and life. revealed, violence generates extensive costs for employers due to reduced productivity, missed work hours and staff turnover (Asia A closer look at the data also reveals that the decline in labor force Foundation, 2017). But awareness remains limited, as do company participation has mostly hit urban women, which is particularly trou- policy responses. bling given that 60% of the population will likely be urban by 2020. The public discourse on this issue is partly to blame. An aggressive Other notable barriers to empowerment exist in entrepreneurship. media campaign initiated around 2007 labelled urban, educated, Contrary to upbeat media reports, China’s vibrant tech world is still single women over the age of 27 as “leftover women.” This label has overwhelmingly male. Women only account for 16% of Internet stuck. It is now a fixture in Chinese conversations about gender is- company founders (Technode, 2017a). There are countercurrents, sues, and it has further discouraged many young women from pursu- however. Venture capital funds such as Teja Ventures and accelera-

20 tors like TechBase champion new gender-sensitive investment strat- German companies in China cannot afford to overlook these bot- egies. More and more women are becoming co-founders and inves- tom-up demands for change in corporate culture and social norms. tors, mentoring other women or sponsoring initiatives to support Moreover, in designing their social engagement strategies, it would female-led startups like Virginia Tan’s She Loves Tech competition. be beneficial for companies to address the intersection between gender and broader social inequalities. For instance, rural women With rapid technological change and the growing influence of millen- make up as much as 60% of the agricultural workforce in some prov- nials, women are becoming more assertive and confident. They in- inces (UN Women, 2016) and are often disproportionately affected creasingly equate success with self-achievement and purpose, rank by poverty, particularly elderly women; this group lacks access to these goals highest (61.3%) above family and marriage and demand good, affordable education, healthcare, maternity leave and child- more flexible and equal company policies (Forbes, 2019). And, cru- care facilities, as well as pensions and elder care. The same is true of cially, the same survey by Lean In China and Deloitte last year found female migrant workers. that Chinese men also want a healthy work-life balance, something that has been confirmed by other studies (Catalyst, 2012). To the These overlapping problems show that setting aside gender equality extent that family plays an important role in personal life, this find- as “women’s issues” and treating it as a separate set of problems is ing challenges the traditional stereotype according to which women suboptimal. There is a better way, namely taking a holistic and gen- care more about having a healthy balance between their career and der-sensitive approach to CSR by integrating and mainstreaming gen- family responsibilities than men do. der issues in corporate policies and stakeholder relations at all levels.

Gender and CSR: Companies as drivers of social change

CHINESE WOMEN’S INCOME Even in China’s state-led economy, the private sector is increasingly as percent of men’s accountable to society. Businesses now have considerable influence 90 on how public goods are delivered and social norms are shaped. As private companies have come to play an increasingly important 79.0 80 role in public life globally, CSR concepts have moved beyond philanthropy. They now include corporate responsibility across the entire 77.5 70.1 70 67.3 marketplace, the workplace and society at large. In all these settings, Urban seeing women as stakeholders – employees, consumers, suppliers, investors, civil society representatives – helps formulate a more gen- 60 59.6 Rural der-aware approach to CSR (Grosser, 2009). 56.0 50 This is where the concept of gender mainstreaming comes in. Rather than simply addressing “women’s issues,” companies must reorga- 40 1990 2000 2010 nize and improve their processes so that gender equality is incorpo- Year rated “in all policies, at all levels, and at all stages” (Council of Europe, 1998). Gender mainstreaming combines technical tools, such as Source: author’s elaboration based on the results of ACWF’s First, Second and Third Survey on the Status of Women monitoring and reporting, with political ones, namely women’s par-

21 SPECIAL REPORT

ticipation in decision-making. Such a holistic approach does not focus In China, given the main challenges outlined in this report, consid- on women’s special needs and disadvantages, but rather on the very erable opportunities exist to utilize the WEPs in the following ar- structures engendering them – such as long working hours com- eas: developing women’s leadership and entrepreneurial skills with bined with limited paternity leave – which can be addressed through an eye on the most vulnerable groups, ensuring equal treatment in more family-friendly company policies for both genders. In this way, the workplace, mitigating the burden of unpaid care, empowering companies can become agents of change beyond the workplace and, women in the supply chain and investing in shifting social attitudes at the same time, drive future growth and economic prosperity. towards gender roles. These recommendations will now be briefly presented, along with some examples that illustrate the challenges Companies seeking guidance in mainstreaming gender into their and opportunities which CSR is facing in the world’s second largest operations may find a gold standard of best practices in the United economy. Nation’s Women Empowerment Principles (WEPs; UN Global Com- pact, 2011). Any CEO can sign in and implement these guidelines to advance gender equality, including by using sex-disaggregated data 1. Developing women’s leadership and entrepreneurial skills in sustainability reporting to clearly communicate objectives, actions and impact to company stakeholders. It is critical to remove gender-specific barriers that prevent women from reaching the top, in and outside the workplace. Digital technol- The WEPs, complemented by a practical Gender Gap Analysis Tool, ogies can play an important role in doing so. The German software include: leadership commitment to gender equality (with specific multinational SAP is an excellent example of a company that takes metrics, targets and incentives for managers such as performance a holistic approach to gender diversity and inclusion in a male-dom- reviews); equal opportunity and non-discrimination (for instance inated industry. SAP works with UN Women in China to close the equal pay, re-entry opportunities for mothers, and flexible working gender gap in innovation, technology and entrepreneurship. The options); safety and freedom from violence; education, training and program SHE CAN, which shows the potential of public-private professional development for women; business development, supply partnerships in China, leverages technological innovation to em- chain and marketing practices that empower women; community en- power female entrepreneurs in the digital age. Over 100,000 rural gagement and advocacy; and transparent measurement of progress and blue-collar women will participate in the training and capacity and reporting. building offered by this program (ACWF, 2017).

With regard to reporting, the GRI-FCI guide is another useful tool SAP also promotes leadership development through mentorship (International Finance Corporation and Global Reporting Initiative, and sponsorship inside the corporate world. Its Business Women’s 2009). It helps companies track and measure their progress across Network, a success story showcased by More than a Market last a number of organizational objectives. Among these are diversity year, has helped over 5,000 women build relationships and share and equality in management, an unbiased wage system, a grievance experiences and skills. The Chinese ridesharing giant Didi Chuxing system against gender-based discrimination, promotion of female invested in a similar platform to support female employees growing entrepreneurship and supplier diversity, contribution to the well- within the company (Financial Times, 2018). There is ample evidence being of both men and women in the community, absence of gender that the availability of female role models is crucial to achieving gen- discrimination in advertising, and gender-sensitive investment strat- der equality, particularly as it can eliminate organizational prejudice egies. towards female leaders and encourage more female staff to aspire to senior roles. Some mentorship and leadership development plat-

22 forms such as Lean In China (励媖中国) have immense expertise and job fairs, which could target undervalued groups such as disabled resources and make them available for interested partners. women.

2. Creating equality at the workplace 3. Mitigating the burden of unpaid care through family-friendly policies Companies operating in China need to more vigorously eliminate discrimination at the workplace. Establishing fair criteria for recruit- Closely related to the above recommendations, companies can re- ment, remuneration and promotion – and making sure that manag- duce the disproportionate burden of unpaid care work on women. ers comply – is key to eradicating inequality from people processes, Several multinationals in China, such as IBM and Merck, stepped in where unconscious gender bias is often an issue. Technologies such to address their employees’ concern for a healthier work-life bal- as text mining and machine learning can be used to spot discrimina- ance. They did so with measures such as flexible work schedules and tion in job descriptions and performance reviews. However, since telecommuting options (Catalyst, 2012). While IBM seems to have algorithms can inherit gender bias from the data they train on, fos- given up on telecommuting, experiments with flexible and remote tering a truly inclusive corporate culture is a necessary precondition. working options at Chinese online travel giant Ctrip have benefited employees while strongly improving performance and reducing Firmenich China has been particularly successful at this. The com- costs (Ctrip, 2018; Bloom et al., 2015). It is perhaps no coincidence pany is an affiliate of the Switzerland-based perfume and taste com- that women make up over half of the workforce and one-third of se- pany, and it was one of the four companies in China to receive the nior management at Ctrip. independent EDGE (Economic Dividends for Gender Equality) certification. EDGE measures performance across talent pipeline, pay Similarly, Ctrip set up a daycare center in Shanghai run by a third equity, effectiveness of policies and practices that ensure equitable party. However, a child abuse scandal underscored that choosing the career flows, and inclusiveness of the corporate culture (Finanz Na- right partners is a prerequisite that needs to be taken very seriously chrichten, 2019). Firmenich adopted a holistic approach to gender (Caixin, 2017). With this in mind, several factories in China joined an diversity that encompasses, among other actions, equal pay, training initiative launched by the international Center for Child Rights and and mentorship of female employees, CEO-level commitment to se- Corporate Social Responsibility (CCR CSR) to set up supervised and nior female leader development as a core HR strategy, and a virtual safe daycare spaces for migrant workers’ children (CCR CSR, 2019). career development network for women. Identifying the right partners from the public, private and non-governmental sectors guarantees greater economic and social impact Implementing diversity and inclusion in the workplace often proves and creates scope for mutual learning. challenging for companies. This is because it requires a mindset shift from mere legal compliance and charity to an understanding of gen- Another model that could be applied to China – where parental leave der diversity as a true source of competitive advantage, creativity for fathers is limited to seven to 15 days in most provinces – is PwC’s and innovation. Mentorship can help here as well. In addition, com- Full Circle program, which allows both men and women to leave the panies can consider establishing regular focus groups with manag- company temporarily for care reasons, while giving them continued ers and female employees to identify specific ideas, concerns and access to training and guaranteeing them the option to return to reactions to those concerns. Firms can also be proactive in reaching their careers (EVE, 2017). The economic and social benefits of these out to female talents through data collection efforts and dedicated initiatives ultimately offset the investment required.

23 SPECIAL REPORT

Starbucks seems to expect a similar return on investment. The com- in the garment industry, with guidelines and training for employers pany offered to pay health insurance for more than 10,000 uncov- (Asia Foundation, 2019). ered parents of their Chinese employees (Bloomberg, 2017). As Chi- na’s elderly population is expected to reach one-third of the total by Coca Cola’s 5by20 program, which aims to empower five million fe- 2050 (Xinhua, 2018), the currently disproportionate burden of care male entrepreneurs by 2020 in partnership with international do- on women will only increase – unless corrective measures are taken. nors, governments and civil society, is another success story built It is also remarkable that as much as 68% of Chinese elders without on a holistic approach to that applies gender mainstreaming to the care are women (IDRC, 2017). Family-friendly corporate policies entire supply chain. It consists of training, access to microfinanc- give the company a “big face” and they can be a genuine contribution ing and merchandising, and peer mentorship (UN Global Compact, to solving very real problems. 2018). This approach could be replicated in China, where some programs providing training and financing for female business owners have already yielded good results, such as Goldman Sachs’ 10,000 4. Empowering women in the supply chain Women and its Women Entrepreneurs Opportunity Facility initiatives (APEC). To the extent that companies have a say in their supply chains, good corporate citizenship does not end at the company’s doors – it includes the suppliers as well. If it were otherwise, companies could 5. Challenging social norms simply “outsource” their responsibility. Some stories illustrate opportunities and challenges CSR faces in this regard. The fifth recommendation is to address the root causes of inequality. Family-friendly policies already shape attitudes and beliefs towards Partnering with the China Women’s Development Foundation gender roles. In addition, companies can challenge social norms by (CWDF), Walmart combined targeted poverty relief efforts in rural promoting public awareness of gender equality through public re- areas with training and technical support for micro-entrepreneurs, lations, advertising and marketing. The gains from these efforts in particularly mothers in impoverished regions (China Development terms of brand reputation and sales (World Federation of Adver- Brief, 2017). The company also tried to implement gender-sensitive tisers, 2018) can be greater for those firms in China who target a sourcing, working with a network of women-owned suppliers across young, urban and female consumer base. China (China Daily, 2015). In spite of these initiatives, the latest sexual harassment scandal at Walmart stores and suppliers in China A case in point is the Japanese beauty brand SK-II, which in 2016 (OpenDemocracy, 2018) shows that keeping complex and extensive commissioned an ad addressing the stigma against “leftover wom- operations and supply chains under control requires investment, es- en” (SK-II, 2016). Similarly, the CEO of Proya Cosmetics joined the pecially at multinational corporations with deep pockets. UN’s advocacy campaign HeForShe. This is a global solidarity move- ment that engages organizations and individuals, particularly men, Gender-sensitive risk assessment, due diligence, reporting and mon- as agents of change who speak out in support of women’s rights (He- itoring mechanisms to ensure that female workers at all levels are ForShe). In this context, Proya’s CEO pledged to make the workplace safe from gender-based violence (GBV) will all contribute to improv- more suited to the needs of both genders by building toilets with a ing the situation. Examples of laudable efforts in China include the ratio of 3:1 for female to male cubicles, so that there would no longer Levi Strauss Foundation and its partner, the Asia Foundation. The be lengthy lines at women’s restrooms (All-China Women’s Federa- two recently launched a special program to curb sexual harassment tion, 2014). Personal commitment from the top and the presence of

24 male leaders who advocate for and mentor women can make a huge difference.

CSR and beyond

This selective overview shows that there are many effective ap- proaches for companies in China. These are, of course, not limited to CSR. Firms can tap into unmet market demands – precisely by improving women’s lives, like Mia, China’s biggest cross-border online retailer of maternal and children’s supplies, or the Swedish company Bonzun, which designed an innovative e-health app for pregnant women in China. Investors can also consider sponsoring more female-led ventures.

In terms of philanthropic CSR initiatives, firms could better integrate gender into their practices by better aligning them with the needs of women and girls as well. If companies already invest in education, they could advance gender equality by sponsoring STEM literacy for girls, like Samsung China does in partnership with China Women’s Development Foundation. If they champion sustainable sourcing, they could take women’s greater vulnerability to poverty, food inse- curity, violence and climate change into account.

Ultimately, companies have much to gain from integrating gender diversity policies into their operations from the top down. This requires clear managerial commitments to equality at all levels, including relationships with external stakeholders. Explicit and structured targets, processes and well-established channels are equally neces- Rebecca Arcesati is a Researcher in the Foreign sary, as are performance reviews, evaluations and functional report- Relations Program at the Mercator Institute for China ing systems. Advancing gender equality in the vast Chinese market Studies (MERICS) in Berlin. She holds a Master’s Degree is not an easy task, but it is one that can benefit society at large. It in International Studies from the University of Turin can also bring tangible economic and non-economic returns to for- (Italy) and a Master of Laws in China Studies from ward-thinking companies willing to make the investment. Those will Yenching Academy of Peking University (China). She was be the players really driving growth and development in the years also a Research Assistant at UN Women China in Beijing to come. and is fluent in Mandarin Chinese.

25 CASE STORIES BMW

BOEHRINGER INGELHEIM

BOSCH

BRUGGER

E.G.O. COMPONENTS

EDSCHA

FREUDENBERG

GERMAN SCHOOL SHANGHAI-HONGQIAO

GSN ELECTRONICS

HAPE

HENKEL

MERCK

METRO

OASE LIVING-WATER

SIEMENS

SIG COMBIBLOC

SHAREHOUSE

TAICANG INCLUSION FACTORY

VOLKSWAGEN

WACKER CHEMICALS

26 27 VALUE SHIFTS CASE STORY POLITICAL AGENDA

CUSTOMERS

BMW CHINA THE AUTOMOTIVE TRADING COMPANY & BMW BRILLIANCE AUTOMOTIVE MIDDLE CLASS AUTHORITIES BMW CHINA CULTURAL JOURNEY

SOCIAL CHALLENGES PROJECT APPROACH vative communication. For the the sales while SHOKAY will also Even though it may be impos- BMW China Culture Journey past three consecutive years, return a portion of sale profits to sible to quantify, it is clear that program was launched in 2007, BMW launched ICH-themed Tibetan cooperatives, to lift the many intangible aspects of tra- which is committed to explor- Tour Guides, in collaboration local population out of poverty ditional culture in China are ing Chinese traditional culture with Mafengwo, a highly popu- sustainably and effectively. vanishing. This is true of many and promoting the inheritance lar tourism community of young traditional crafts and everyday and development of ICH. In people to incent regional culture VALUE ADDED customs, and of languages and 2016, guided by the principle of travel; explored creative chan- For the CSR perspective: to folk art. To some degree, this is “teaching a man how to fish rath- nels popular with young genera- date, BMW China Culture Jour- to be expected given the influ- er than giving him a fish”, BMW tions such as on-site livestream- ney has already selected 30 ence of electronic media, the co-founded the Tsinghua BMW ing; and partnered with the SDX inheritors for further training economic development China Innovation Center for ICH Safe- Joint Publishing Company to at the Innovation Center; the is undergoing and the country’s guarding in partnership with create the ICH pop-up show- three series of ICH-themed tour unified, national education sys- Tsinghua University’s Academy room at Beijing Sanlitun, where guides have reached more than tem. Traditional practices that of Arts and Design, to explore the creative works of inheritors 2 million views and downloads; once were valued no longer innovative models for ICH safe- were displayed to the public. The sales of “Yushu Impres- seem useful to many people. The guarding, upgrading its vision Second is to promote ICH art- sion” Series Products reached challenge is therefore to protect from solely providing donations work consumption though in- over RMB 300,000. For the PR China’s rich Intangible Cultural to enabling ICH inheritors, such novative methods. In 2018, the & communication perspective: Heritage (ICH) by finding in- as assisting them in the design of program partnered with the more than 3,271 clippings were novative applications for these ICH works creative transforma- social enterprise – SHOKAY, to collected to promote the aware- venerable practices. tion. The program also explored design the “Yushu Impression” ness of ICH safeguarding; by le- a series of innovative approach- Series of Products and prod- veraging the on-site livestream- es aimed at integrating ICH into ucts which are now available on ing, the program successfully modern life. First is to promote BMW online retail platforms. attracted over 1.3 million audi- ICH safeguarding through inno- BMW receives no proceeds from ences on the People’s Daily APP.

28 KEY FIGURES

Sector Headquarter Automobile Industry in Germany Munich Project start 2007 Active in China since 1994

Employees worldwide in China 130,000 20,900

LESSONS LEARNED safeguarding traditional culture. to enable inheritors and create First is enabling. Guided by the Fully exercising BMW’s brand shared value among BMW as- principle of “teaching a man how influence, BMW China Cul- sociates, dealers, car owners, to fish rather than giving him ture Journey has become the partners and the society, helping fish”, the program well-leveraged “sustainable public platform” integrate ICH into modern life. the platform of Tsinghua BMW Innovation Center to enable the ICH inheritors, and provide the resources they need to develop business. Deriving from the platform, a variety of programs have been developed, such as the “designer & inheritor” cross- over projects. Newly produced creative products have entered the market. Second is to create shared value. BMW China Cul- ture Journey is a perfect illus- tration of BMW Strategic Cor- porate Social Responsibility and commitment to create ‘shared value’ amongst stakeholders including BMW associates, dealers, car owners, partners and social resources including KOLs and media, to join the cause of

29 EMPLOYEES EDUCATION

CUSTOMERS CASE STORY THE COMPANY BOEHRINGER INGELHEIM ENVIRONMENT MIDDLE CLASS DEVELOP VETERINARIAN TALENTS IN CHINA

SOCIAL CHALLENGES ty of animal husbandry in China the China Veterinary Drug As- disbursed as scholarships. In ad- Although it is hard to imagine is to be safeguarded. sociation, for instance in Tibet, dition, BI’s training programs for today, malnourishment was a Inner Mongolia and Qinghai. local veterinarians have reached real problem in China just a few PROJECT APPROACH Further partners include the rel- more than 800 individuals work- decades ago. In 1971, people in In 2006, Boehringer Ingelheim evant departments in provincial ing in remote rural areas where China had, on average, a daily in- (BI) established the Boehringer governments. The result is that solid training is especially need- take of just 1,800 calories. In the Ingelheim Scholarship program. local authorities, industry asso- ed. West, this is equivalent to a diet So far a total of 14 scholarship ciations and private enterprises for losing weight. Since then, cal- projects, as identified by the all collaborate to achieve the IDEAS FOR THE FUTURE orie intake in China has doubled program, have been carried out program’s goals. The program is In the future, BI will extend its and is now roughly the same as with 12 Chinese agricultural strictly meant to benefit animal programs to train even more in the West. The single biggest universities, institutes and col- husbandry on site ultimately, veterinarians in China. In 2019, change in the Chinese diet has leges to attract more students and product promotion in any BI intends to launch a new initia- been the consumption of meat, to the field of veterinary medi- form is strictly excluded. BI and tive called Sending Technology which has grown by more than cine. In recent years, the com- its partners conduct quarterly to the Countryside to expand its 400 percent since 1971 and has pany has extended the program surveys to collect feedback so training programs in remote ru- more than doubled since 1991. and added new projects to it. they can adapt the program to ral regions. In addition to train- This means that livestock popu- In doing so, it has payed special local needs and ensure its over- ing vets, the project will target lations and the industries relat- attention to bringing veterinary all quality. farm workers, providing them ing to them have grown rapidly. know-how to remoter parts of with practical skills for sustain- It also means that there is a lack China, such as the country’s VALUE ADDED able farming. of well-trained, professional rural borderlands. To maximize Nearly 1,000 students have veterinarians in China – at least spillover effects and extend participated since the launch 300,000 more are currently support to locations where it is of the Boehringer Ingelheim needed. This situation must be really needed, BI has partnered Scholarship program in 2006. remedied if the quality and safe- with various local branches of Some RMB 4 million has been

30 KEY FIGURES

Sector Headquarter Pharmaceutics, in Germany Animal Health Ingelheim

Project start Active in China 2006 since 1994

Employees

worldwide in China 50,000 3,500

31 EMPLOYEES EDUCATION

THE COMPANY CASE STORY VALUE SHIFTS BOSCH (CHINA) INVESTMENT AUTHORITIES BOSCH UNIVERSITY PROGRAM ENVIRONMENT

SOCIAL CHALLENGES PROJECT APPROACH established connections with by the Dream Fund since 2016. When they succeed in attend- This is why the Bosch China NGOs. The project’s topics have ranged ing university in China, students Charity Center set up its Univer- In 2016, the Bosch China Chari- from aid for the children of mi- from poor families often en- sity Freshman Program in 2011. ty Center also set up the Dream grant workers and care for the counter difficulties. For example, Its aim is to alleviate poverty by Fund, which is affiliated with elderly to projects on ecological they must live on a tight budget, providing financial support and the bursary program. The fund sustainability. which can exclude them from creating educational opportuni- allows bursary students to re- Bosch provided the funding for participating in social activities ties. Each year, for instance, the alize their social initiatives and these projects, which totaled with others. Coming from a dis- project provides students from start-up plans. Bosch employees RMB 14.55 million. This includ- advantaged background, they 13 universities with a bursary of volunteer to coach the students, ed RMB 13.82 million in bursary also frequently lack the cultural between RMB 2,000 and RMB so that the students and their grants and RMB 0.75 million for capital that would allow them 5,000, depending on living ex- initiatives can take advantage of the Dream Fund. to keep up with their peers. This penses in the relevant region. the volunteers’ business experi- can increase exclusion even fur- The project entrusts its partner ence and project management LESSONS LEARNED ther, seriously affecting their universities with determining skills. Usually, there are several grants success at university and, conse- the right amount. available to students at each uni- quently, on the job market. The Bosch also organized two study VALUE ADDED versity – for instance, from the challenge is to help these stu- tours for students from univer- So far, 2,894 students from 13 government, from other compa- dents both financially and social- sities across China. The partic- universities have benefitted nies and from foundations. Com- ly, so that their university years ipants met in Shanghai, where from Bosch’s bursary program. municating with the university are a success. they took part in workshops and In addition, 49 projects involving faculty is therefore important team-building programs and 352 students have been funded when selecting beneficiaries and

32 KEY FIGURES

Sector Headquarter Manufacturing in Germany Stuttgart Project start 2011 Active in China since 1909

Employees worldwide in China 402,000 60,000

designing the grant’s goals, so that no overlap or redundancy results.

IDEAS FOR THE FUTURE Bosch plans to extend the programs in the future. Starting this year, the company will work with the international student organization ENACTUS to invite the best Dream Fund team from each university to Bosch Head- quarters in Shanghai so they can present the results of their social initiatives. The goal is to motivate students receiving support and encourage more social projects. For the same reason, the program will also increase the number of workshops on leadership and project design.

33 VALUE SHIFTS EMPLOYEES

CASE STORY THE COMPANY BRUGGER ENVIRONMENT MAGNETSYSTEME DIGITALIZATION SUPPLIERS INCREASING SUSTAINABILITY IN MAGNET SUPPLY CHAINS

SOCIAL CHALLENGES bility through its CSR strategy German Ministry for Economic asked to become CSR-certified Rare-earth magnets are essen- that started in 2014. To ensure Cooperation and Development by the project. BRUGGER also tial components for products as a sustainable longterm concept, the project reached four suppli- established the development diverse as computer hard drives, BRUGGER partnered with Nan- ers of BRUGGER. The project of the FairMagnet certificate wind turbine generators, head- jing University’s EHS Center and helped suppliers to implement of which all suppliers are now a phones, electric cars and guitars. professional audit enterprises, CSR plans. member of. While the certificate But apart from being exceedingly aiming at a win-win situation is still developing, the system useful, rare-earth elements are especially for its suppliers. The VALUE ADDED aims at establishing transparen- also dangerous. All parts of ra- project team, led by Miriam Fritz From the start, the project in- cy and safe working conditions, re-earth supply chain pose seri- of Berners Consulting, conduct- creased the CSR performance and at the same time reducing ous risks with regards to health, ed audits and a comprehensive among owners, managers and environmental pollution. environmental protection and supply-chain study and orga- staff at the suppliers. On top of worker safety. While China is the nized CSR trainings. The team of significantly increased EHS im- LESSONS LEARNED major source of these elements Nanjing University’s EHS Center, provements employees at sup- Brugger found a number of fac- and the government classifies led by Dr. Wang Shi, contributed plier companies benefited from tors particularly important for them as a strategic resource to to the project with its expertise better work contracts. Brugger’s the project’s success. A compre- which special rules apply, many and its reputation as a leading suppliers continue to improve hensive project concept and the of the buyers are located abroad. Chinese authority in the field, their CSR performances. Some of direct involvement of top man- thereby increasing the project’s Brugger’s suppliers have devel- agement, was very important. PROJECT APPROACH credibility among suppliers. The oped their business much fast- Having an experienced project As one of the leading companies project team carried out initial er as a result of the project and team is equally important, as is in the production of magnets audits and a comprehensive even acquired new customers. having a reputable and credible BRUGGERs production and upstream supply-chain study Furthermore, the suppliers have Chinese partner, in this case a supply chain effects the lives of and organized training events become much more transparent leading university. Financial in- multiple individuals. BRUGGER in corporate social responsibil- about their own supply chains. centives were a significant factor addresses it’s social responsi- ity. With the co-financing of the More suppliers and traders have and the co-financing from the

34 KEY FIGURES

Sector Headquarter Rare earth magnet in Germany systems Hardt

Project start Active in China 2014 since 2000

Employees worldwide 100

German government were very useful. The government consid- ers parts of the supply chain to be of national importance and they cannot be included in the project as a result.

IDEAS FOR THE FUTURE The cooperation with its suppliers will continue and further develop. In addition, Brugger is expanding its focus to other parts of the supply chain. Brugger also seeks like-minded German companies to join the FairMagnet initiative.

35 EMPLOYEES

THE COMPANY

SOCIAL DIVIDE CASE STORY E.G.O. COMPONENTS URBANIZATION SUPPLIERS SUMMER CAMP FOR LEFT-BEHIND CHILDREN

SOCIAL CHALLENGES PROJECT APPROACH each year. During the Summer part of China they did not know One of the most important fac- More than two-thirds of the 680 Camp, internal and external vol- before. The program also has tors contributing to China’s eco- employees at E.G.O. Compo- unteers organize daily activities economic benefits. A high turn- nomic success over the past 40 nents Taicang are migrant work- for the children while their par- over rate among migrant work- years has been a highly mobile la- ers who do not live with their ents are at work. The activities ers – usually the result of family bor force. Some 277 million peo- families and who are often very take place from 8 am to 4:30 pm issues – is a serious problem for ple, more than one-third of the far from home. Under normal and they include English lessons, companies. The Summer Camp country’s working population, are conditions, these people would dancing, painting, music, pottery, is an effective way of addressing rural migrant workers who have see their families only once a swimming, martial arts, sports this challenge. left their villages to find employ- year, during the main holidays and team building. Excursions ment in factory towns. Their mo- at Chinese New Year. The com- to Shanghai and Taicang are also LESSONS LEARNED bility, however, comes at consid- pany therefore gives these em- part of the program, making it Many other companies and erable personal cost. Even though ployees the opportunity to bring possible for the children to learn organizations in Taicang have the workers are key to China’s their children to Taicang for a more about their parents’ work visited the Summer Camp, con- success, urban authorities often Summer Camp which runs for environment. After work, the firming that projects like this are exclude them from social services six weeks during the children’s children stay with their parents necessary. Many of the children at their workplaces, such as wel- summer vacation. The Summer until the next morning. have participated in the summer fare programs and public child Camp took place for the first camp several years in a row – ad- care. This is why many migrant time in 2016. It was very suc- VALUE ADDED ditional proof that the camp is workers leave their children be- cessful, and the company has The Summer Camp contributes fulfilling its mission. Each year, hind, to be cared for by their ex- continued to organize it every to reuniting families who are special attention is paid to cre- tended families. Under these con- year since then. This allows fam- otherwise separated. Moreover, ating new activities and courses ditions, it is not possible to have a ily members to spend precious the children take part in many for the children, ensuring that normal family life. Mitigating this time together and experience a fun and useful activities which the “regulars” do not simply re- problem is among the biggest normal family life. About 80 chil- are normally not accessible to peat what they have done the challenges in Chinese society. dren take part in the program them. They also learn about a year before.

36 KEY FIGURES

Sector Headquarter Manufacturing in Germany Oberderdingen Project start 2016 Active in China

since 1998

Employees worldwide in China 6,000 714

IDEAS FOR THE FUTURE Reuniting parents and children at Taicang is good for everyone, which is why E.G.O intends to continue the Summer Camp in the future. The organizers will also continue using employees’ suggestions to improve the program. Many companies and institutions in the area have supported the summer camp in a variety of extremely useful ways, and E.G.O. is looking forward to expanding the cooperation with its partners.

37 EMPLOYEES EDUCATION

CASE STORY

THE EDSCHA AUTOMOTIVE COMPANY TECHNOLOGY (SHANGHAI) AUTHORITIES EDSCHA MOVES – DEVELOPMENT SOCIAL DIVIDE AID FOR YUNNAN KIDS

SOCIAL CHALLENGE PROJECT APPROACH VALUE ADDED IDEAS FOR THE FUTURE Even as China has seen economic This is a monumental task, but The initial steps of the project Edscha will continue to support development on an unprecedent- helping one school at a time will have delivered “first aid” to the the school, provide regular, re- ed scale throughout the past 40 steadily improve the situation. In school in Yunnan. The fact finding liable help and expand its coop- years, regional imbalances have order to do just this, Edscha in mission also established personal eration over time. A next trip to increased. To some extent, this 2018 identified a suitable school rapport between the volunteers Yunnan is already planned. It will is a side effect of success. Chi- in Fugong County, Yunnan Prov- and the teacher and students on be longer than the first one, to al- na’s coastal and urban regions ince. From the start, the company site. Crucially, the trip enabled low the volunteers more flexibili- have pulled ahead so quickly intended to build up a long term the volunteers to determine what ty while on site, and as a result of that remote, rural areas by now cooperation with the school, as form of help the school needs the project’s initial steps, the aid it frequently look as though they this is the best way to genuinely most, namely clothes and school will deliver will be more targeted could not possibly belong to the understand the situation on site uniforms, classroom equipment, and specific. same country. This is also true of and thus to provide effective help. renovation work as well as im- education in China. In rural parts, The Edscha team then raised provements of hygiene. An in- schools are often severely under funds through a charity basar creased budget for teacher train- equipped and underfunded and and organised the 3000 km trip ing is also part of the program. struggle to provide the bare ne- from Shanghai to Yunnan for a cessities. This imbalance in ed- fact finding mission. The trip also LESSONS LEARNED ucation further exacerbates the served to transport equipment, Aiming for a long term partner- disadvantages that rural children and the volunteers gave lessons ship turned out to be the right de- are already suffering anyway. The in the school. The volunteers also cision. After providing first help challenge is to mitigate this situa- established, together with the through the initial trip, Edscha is tion and to find ways to help rural teacher on site, how best to sup- now in a better position to help schools in need. port the school in the future. more.

38 KEY FIGURES

Sector Active in China Automotive since 1994

Project start 2016

Employees worldwide in China 5,000+ 1,500+

39 EMPLOYEES EDUCATION

CASE STORY

THE COMPANY FREUDENBERG VALUE SHIFTS CHEMICAL SPECIALITIES AUTHORITIES I LOVE ROBOTS PROGRAM DIGITALIZATION

SOCIAL CHALLENGES APPROACH ADDED VALUE LESSONS LEARNED The Chinese school system fo- This is why Freudenberg in 2016 The program offers regular class- It emerged that during the first cuses on theoretical learning and decided to provide Chinese stu- es in which the children learn term, the budgeting had been too exam results. dents with fun and instructive multiple skills, such as building close to the initial cost estimate, As a consequence, practical skills extracurricular activities, free of remote-controlled robots and so Freudenberg provided an ad- are often neglected. This has charge. The company decided writing code to control these ro- ditional budget as the project was several downsides. On the one that it would initiate and sponsor bots. Freudenberg provided the running. Next time around, the hand, an unbalanced approach to classes to build and program ro- funding and has donated 16 com- company will plan for some head- education is simply not good for bots -- this is popular among the puters, 7 projectors and 16 sets room to allow for more flexibility. the children. On the other hand, children, and it also has real world of Lego to the project. In addition, the strong focus on book learning applications, such as coding. The company volunteers organize the IDEAS FOR THE FUTURE also has practical consequences. first ”I love Robots” classes start- lessons, take part in the classes The project was initiated by a Upon graduation, young people ed in 2017 in Shanghai and have andsupervise the program’s im- number of Freudenberg volun- in China are not well prepared to since been running regularly. In plementation. So far, there are 16 teers. Initially, however, the proj- cope with the need for practical, order to facilitate this, Freuden- students. Since Freudenberg has ect management lacked a formal hands on skills in the workplace. berg partnered, among others, upgraded Golden Sun’s venues structure. In the future, the com- Many Chinese parents try to bal- with Golden Sun Education Train- for this purpose, the project will pany will build up a project team ance the curriculum by enrolling ing Center, an educational firm in be able to accept more partici- and involve more employees in their children in extracurricular Shanghai. Golden Sun provides pants in the future. the program. Freudenberg also activities. These, however, are so the venue, while Freudenberg intends to extend the project’s costly that many students are ex- and its other partners provide the scope and organize similar activ- cluded from them. The challenge funds and company volunteers ities in additional venues. is to help these students. participate in teaching the children and planning and organizing the classes.

40 KEY FIGURES

Sector Headquarter Chemistry in Germany Munich Project start 2017 Active in China

since 2004

Employees worldwide in China 32,000 100

41 EMPLOYEES EDUCATION

THE COMPANY CASE STORY VALUE SHIFTS GERMAN SCHOOL SHANGHAI HONGQIAO AUTHORITIES PROJECT “ILLUMINE +” EYE CARE OUTREACH SOCIAL DIVIDE

SOCIAL CHALLENGES PROJECT APPROACH all participating children, and VALUE ADDED In recent years, China is increas- This is why the German School the volunteers organise and fi- So far, the project has provid- ingly perceived as a superpower Shanghai Hongqiao, together nancially support treatment, in- ed medical checkups for 3,000 and presents itself as such. At with its partner, the NGO Mifan cluding surgery, when needed. children donated 147 pairrs of the same time, the country still Mama, runs a comprehensive An additional, important part of glasses and arranged surgical has many of the characteristics program for the benefit of poor the project is to motivate local treatment for 13 children who of a developing country, and this children to provide measures hospitals and NGOs to carry out would otherwise have lost their is especially true with regards for the prevention, treatment similar work once the project eyesight altogether.. to the social inclusion -- or lack and rehabilitation of visual im- team has moved on. Encouraging local hospitals and thereof -- of people with dis- pairments. As for rehabilitation, the proj- NGOs on site to carry out sim- abilities and, more particularly, In order to contribute to preven- ect’s efforts are focused on the ilar work is also showing con- to the difficulties children with tion and treatment, volunteers Shining Star orphanage for blind siderable results. For instance, disabilities have to gain access to from the German school and children in Shanghai. The Ger- after the project carried out its education. The gap between ur- its partner, along with doctors man school is supporting the work in Henan Province, the ban and rural areas and between and nurses, go on field trips in orphanage since 2012, through local Youth Foundation carried different regions causes further rural and small town China to fundraising and a long standing right on and reached more than challenges. Early intervention visit schools, hospitals and lo- volunteer program. 20,000 students -- exactly the and preschool education for cal NGOs. Free checkups and kind of multiplier effect that the blind children is a case in point information on how to avoid or project had aimed at.nner. -- timely help is of the essence treat problems before they be- to ensure their future education. come serious are provided for

42 KEY FIGURES

Sector Headquarter Education Shanghai

Project start 2012 Active in China since 1995

Employees in China 180

LESSONS LEARNED Initially, the poject intended to bring foreign doctors and nurses to its trips into rural China. But it soon emerged that this was not practical due to the language barrier and a host of other problems. The project this took a different approach -- cooperatio with local medical staff. Combin- ing the more international out- look of the project partners with local expertise has proved to be effective.

IDEAS FOR THE FUTURE The German school will continue to contribute to this project by volunteer work in Shanghai and during field trips as well as by donating money to pay for the education, surgery and the support of needy children.

43 EMPLOYEES SOCIAL DIVIDE

CUSTOMERS

THE COMPANY CASE STORY GSN ELECTRONICS (SHENZHEN) MIDDLE CLASS COMPETITORS GSN LIVING WAGE PROJECT URBANIZATION

SOCIAL CHALLENGES PROJECT APPROACH social benefits to the maximum cluding a housing allowance, Global value chains have creat- This is precisely what GSN Elec- reasonable extent. As a part of continuous training, regular ed many opportunities and many tronics set out to do. Since 2013, this general program, GSN Elec- working hours, fully compen- problems. On the one hand, off- the company is taking radical tronics (Shenzhen) has adopted, sated overtime and an overtime shoring production to countries measures in order to run a truly in October 2018, a Living Wage within 9 hours per week. 15 where labour is cheaper while sustainable business -- and this scheme which provides not only days of paid annual leave are retaining research and design in includes economic, ecological skilled office staff but also most- also a part of the package, as high income countries really did and social sustainability. GSN ly unskilled assembly workers are an additional10 days of paid produce an opening for develop- hereby follows the eco-social with a fair opportunity to earn annual “See your child” leave for ing countries to grow an indus- business concept TRI-MONY by a regular monthly living wage of migrant workers who left their trial base. China is the most im- company founder Frank Martin at least RMB 3,600 without any child behind in their hometown. pressive example of this effect, Pueschel, striving for a Triple overtime work – during a reg- As a result, workers at GSN ap- and has by now moved up the Economic Harmony. This disrup- ular 5-day working week of 40 pear to be happier, work better value chain a good deal. On the tive eco-social concept contains hours with 2 full rest days on the in teams, are more focused and other hand, if labour cost is one four innovative elements, and weekend. The GSN Living Wage more productive at work and are of the chief criteria, the interna- the most radical of those is that refers to the living wage report loyal to the company. Worker re- tional division of labour runs a the annual profit is being divided for urban Shenzhen estimated tention, a perennial problem in risk of permanently depressing into 3 equal parts. One part is by the Global Living Wage Coa- China, is not an issue at GSN. wages in low income countries, reserved for the shareholders lition. even to the point where a regu- and company owners. The other LESSONS LEARNED lar income is not enough to live 2 parts are strictly designated ADDED VALUE The program was not accepted on. The challenge is to balance to finance the company’s com- As a result, GSN employees in within the company at first. The the different aspects of inter- mitment to Social Corporate Shenzhen receive a number of workers insisted on excessive national labour division in such Responsibility and Corporate benefits that are, sadly, not the working hours to secure their a way that everybody gets a fair Citizenship. The objective is to norm. These include a proper overtime pay. Meanwhile, office share out of it. transform monetary profit into wage, full social insurance in- staff questioned the workers’

44 KEY FIGURES

Sector Headquarter Electronic Connectors / in Germany Electronics Manufacturing Industry Mannheim

Project start Active in China 2018 since 2012

Employees

worldwide in China 58 38

entitlement to a living wage as gram. GSN intends to expand the disruptive eco-social business that would reduce the social program to all manufacturing fa- concept TRI-MONY as a tem- status gap between them. Ef- cilities within its supply chain in plate for a new kind of business fective progress could only be Shenzhen. Furthermore, GSN model in the world of Corporate made after the local manage- will take efforts to promote its Responsibility. ment team was dismissed due to denial of collaboration. Once the new cooperative management board was in place, GSN established an internal stakeholder dialog to address all concerns and to re-establish mutual trust. Through team-building events, trainings and workshops, GSN was able to get the full support of all relevant staff.

IDEAS FOR THE FUTURE GSN will continue its commitment of social and ecological sustainability. In particular, the company will give priority to improving the quality of life of so-called left-behind children of rural migrant workers in China through its “See Your Child” pro-

45 VALUE SHIFTS

CUSTOMERS

THE COMPANY

CASE STORY

HAPE HOLDING SOCIAL DIVIDE AUTHORITIES WE CARE, WE SHARE

SOCIAL CHALLENGE PROJECT APPROACH VALUE ADDED LESSONS LEARNED While poverty worldwide has In order to make a contribution to By the end of 2018, the program In order to make the donations been in decline for many years this, Hape initiated its global char- benefited more than 12,000 transparent, Hape enables cus- now -- the number of people liv- ity program We Care, We Share children around the world. Hape tomers to trace who receives the ing in absolute poverty has fallen in 2016. Under this program, donated toys to children in kin- donations if possible. Protect- by more than 60 percent in the for each set of Hape toy building dergartens in Nepal, refugee ing the privacy of the recipients, past 30 years -- poverty has by no blocks purchased anywhere in camps in Syria, children’s hospital however, is important. This is why means gone away. This is also true the world, one toy is donated to in Afghanistan, to early childhood Hape only makes the donations of many children who are in need a child in need. Hape selects the care and development centres in traceable if formal permission is of help due to economic or po- countries and recipients and cus- Zimbabwe and to refugee camps given by the children and their litical circumstances or because tomizes the toys to their needs. in Greece, as well as to 59 autism legal guardians. they are in poor health, whether The company also carefully in- rehabilitation centres, 1 pediatric it be in refugee centres, orphan- spects the toys before shipping palliative care organization and 1 PLANS FOR THE FUTURE ages or hospitals. One challenge them to their destinations. Sever- children park in China. In 2018, We Care, we Share is a long term is to help them in such a way that al international NGOs including Hape also donated toys valued at project. In order to ensure its they can be free of worry at least Save the Children, Plan-Interna- over RMB 2.2 million to schools effectiveness, Hape revisits the some of the time and experience tional, UNICEF, and Beilun Chari- in poverty-stricken areas in Qin- beneficiaries every six months childhood as much as possible un- ty Federation are Hape’s partners ghai and Jilin Provinces in China. and reevaluates the countries der the circumstances. in this project. They help the com- and beneficiaries once a year. pany with customs clearance and Hape will continue its program transport and with determining and expand its scope so that more the recipients of the donations. children can benefit from it in the For local distribution, the com- future. pany selects Hape Ambassadors who deliver the toys in person and who spend one day with the children in question. 46 KEY FIGURES

Sector Headquarter Baby and children’s in Germany toys industry Mücke

Project start Active in China 2016 since 1992

Employees worldwide in China 1,000+ 1,000+

47 VALUE SHIFTS

ENVIRONMENT

CUSTOMERS

THE COMPANY CASE STORY HENKEL (CHINA) INVESTMENT AUTHORITIES POLITICAL AGENDA FLYING HOPE

SOCIAL CHALLENGES PROJECT APPROACH Province – to learn about the fishermen from the local com- Environmental degradation is a Henkel’s project Flying Hope sandpiper’s migration patterns, munities, holding discussions problem everywhere. In China, aims to save the life of an endan- and via Henkel’s Flying Hope and workshops. The aim is to it is especially alarming. Given gered bird species, the spoon- project, to draw more attention help local stakeholders develop the speed and scale of Chinese billed sandpiper. There are only of Sandpiper’s protection, and strategies that save the sandpip- urbanization and industrializa- about 250 to 450 pairs of these environment protection, and er from extinction – while also tion, viable habitats for many birds left. The decline of the environment protection in the protecting the livelihood of fish- animal species are shrinking species is in large part due to Yangtze River Delta area. The ermen and the other citizens of and, in some cases, disappear- land reclamation in East Asia, studies provide local authorities Rudong County. ing. Many species, such as the which has destroyed wetlands, with the data necessary to make Chinese alligator, are therefore leaving very limited habitat for informed, sustainable decisions. VALUE ADDED threatened with extinction; Spoonbilled Sandpiper and oth- Meanwhile, Henkel organized a While it is still an open question some, such as the South China er water bird species. While, variety of charity events to raise if the sandpiper can be saved, tiger and the Yangtze River dol- sadly, prospects for the species funds for the project and scaled Flying Hope has created a sit- phin, are already functionally seem to be dire, Henkel’s Flying up its work with local schools uation which might make that extinct. Finding strategies that Hope project works to extend to increase awareness among outcome possible. The project strike a balance between provid- the sandpiper’s “deadline” by an- students and their families. For succeeded in alerting local au- ing prosperity for humans and other 10 years – to buy time for instance, Flying Hope initiated a thorities to the problem and ensuring viable environments finding a long-term solution. painting competition among the supplying them with the infor- for animals is an issue of global Since 2016, Henkel started to students, maximizing its scope mation they need to make the proportions, one that China also sponsor its Chinese partner by having an online vote, which appropriate decisions. Similarly, faces. Naturally, no one initiative “Spoondilled Sandpiper in Chi- attracted more than 5,000 peo- Flying Hope succeeded in in- alone can overcome this prob- na” for its field studies in the ple who determined the winner. volving local fishermen in the lem. The challenge, therefore, is wetlands of Rudong County – In 2018, Flying Hope entered project. Efforts to raise aware- to contribute, however modest- situated in the Yangtze River a new phase. Since then, the ness in the surrounding area ly, to improving the situation. Delta on the coast of Jiangsu project has been working with and get people interested have

48 KEY FIGURES

Sector Headquarter Chemistry in Germany Düsseldorf Project start 2016 Active in China since 1987

Employees worldwide in China 53,000 5,000

also produced encouraging involve more volunteers in the results. For instance, several project – both by recruiting bird-watching clubs have been Henkel employees and by bring- established in Rudong County, ing other companies on board. and local schools continue to in- The long-term goal is to protect volve students and their parents the left intertidal area in Yellow in the project. sea, providing the necessary habitat for millions of migratory LESSONS LEARNED shorebirds, Spoonbilled Sand- It is clear that protecting a bird piper and over dozens of other species would not succeed if it endangered species. happened at the expense of the local community. This is why Fly- ing Hope cooperates with local authorities and citizens to develop strategies that enable the communities affected to pros- per in a sustainable manner.

IDEAS FOR THE FUTURE Flying Hope will continue to work with local stakeholders such as fishermen’s cooperatives. The project will also evolve by partnering with local schools. In addition, Henkel intends to

49 EMPLOYEES

CUSTOMERS

THE COMPANY

CASE STORY

MERCK HOLDING ENVIRONMENT URBANIZATION CLEAN WATER PROJECT

SOCIAL CHALLENGES drinking water in rural schools. ect, 16 volunteers from Merck IDEAS FOR THE FUTURE In China, there is still a large gap In addition, Merck donates wa- visited four rural schools, check- Due to more employees in 2019 of development between urban ter analysis machines to local ing the performance of the puri- Merck’s donations will rise to and rural areas, not only in eco- communities to help monitor fication facilities and organizing RMB 1,386,999. Together with nomical areas but also in the field and improve their water resourc- experiments with the students. One Foundation Merck will con- of sanitary. For example, clean es. Merck employees provided In 2019, Merck’s total dona- tinue to support the schools with water is a must to ensure good training on water quality testing tions to this project will reach water filters in the next three health. Unfortunately, this ba- instruments and shared Merck’s RMB 1,386,999, reflecting the years. Merck’s senior manage- sic need is not met in all regions water expertise with local com- increased number of employees ment team is now actively de- across China. munities. in China. veloping more CSR projects focusing on education, health and PROJECT APPROACH VALUE ADDED LESSONS LEARNED environment. Merck’S senior Merck China initiated the proj- In 2018, a total of RMB Maintenance of the donated management team is now active- ect of Clean Water that aims to 1,184,424 was collected, help- machines will prove vital to en- ly developing more CSR projects ensure clean water for school ing 15,000 students in 33 ru- sure the long-term effects of the focusing on Global Health, Sus- children in remote areas. For ral schools gain access to clean Clean Water project. Meanwhile, tainable Solutions and Broad this project Merck cooperates drinking water. In addition, Mer- the sanitary problems in rural ar- Minds. with the One Foundation, a Chi- ck China’s Life Science Sector eas with water shortage are still nese NGO. Merck donates RMB donated 20 sets of water quality severe as body hygiene is kept to 1.00 each day for each employee testing instruments to help local a minimum to save on water. Fur- in China to finance the installa- communities test and monitor ther development in this area is tion of purification facilities for water quality. As part of the proj- therefore crucial.

50 KEY FIGURES

Sector Headquarter Chemical and pharma- in Germany ceutical industry Darmstadt

Project start Active in China 2018 since 1933

Employees worldwide in China 51,000 3,500

51 ENVIRONMENT

CUSTOMERS

THE COMPANY

CASE STORY

METRO CHINA COMPETITORS URBANIZATION METRO GREEN STORES

SOCIAL CHALLENGES includes the installation of so- its stores in China, namely the stores. The partial upgrades also It is a truth nearly universally lar panels, rain water collection stores in Dongguan, Shanghai make a significant difference. For acknowledged that good stew- and recycling.. In practise, this Putuo and Jinan. To ensure a example, 17 stores so far have ardship of the environment is means renovating and upgrading green building standard Metro installed rooftop solar panels crucial, and that reducing CO2 every single store. To approach orientated its renovation meth- which produce about 20 percent emissions is a central part of it. this matter methodically, Metro ods on the Chinese label of of the store’s electricity con- Some of this work needs to be divided its ecological measures 3-Star Green Building label and sumption. done at a high level of decision into 4 categories: Lowering the US label of Leadership in En- nergy efficiency is further in- making -- governments commit- emissions, utilizing renewable ergy and Environmental Design creased, for instance, through ting whole countries to the re- energy, smart management and (LEED) Gold standard. highly efficient air conditioning duction of their emissions. But a energy recycling. These catego- Measures concentrated on tech- systems that reduce electricity great deal of it depends on deci- ries include a host of measures nologies that lower emissions, consumption by 25 percent- sions of individuals and other pri- from upgrading cooling systems new ways of utilizing solar sys- While reducing carbon emis- vate actors such as companies. and air conditioning to be more tems and smart management sions and energy consumption, The challenge is for everyone energy efficient and by installing technologies. On top of that, new the Green Stores also make life -- especially those in positions of charging stations for electric ve- systems were put into place that easier for customers, for exam- influence -- to contribute to eco- hicles to installing solar panels support energy recycling. ple those who com to the stores logical sustainability. on store walls, roofs and car park by electric vehicles. Ecologically canopies to residual heat collec- VALUE ADDED upgrading the stores also raises PROJECT APPROACH tion. So far, Metro has completely up- awareness among the customers This is why Metro started it graded 3 of its stores in China, as well as among Metro employ- Green Store initiative in 2015. Metro is working to achieve the while partially upgrading more ees. The aim is increasingly to in- goal of integrating green and than 40 in an ongoing process. tegrate innovative technolo- smart technologies in its dai- Fully upgraded Green Stores LESSONS LEARNED gies that serve to reduce each ly business. To achieve its long consume 50 percent less ener- The process of renovating and store’s ecological footprint. This term aim it renovated three of gy per annum than conventional upgrading a store while maintain-

52 KEY FIGURES

Sector Headquarter Retail/Wholesale in Germany Düsseldorf Project start 2015 Active in China since 1995

Employees worldwide in China 150,000 11,000

ing daily business is a challenge. In order to ensure smooth operations and successful upgrades, Metro established a specialized team to facilitate and monitor the ongoing process.

IDEAS FOR THE FUTURE METRO aims to reduce its worldwide carbon emissions by 50 %byin the year 2030 (compared to 2011 levels). More stores will be equipped with smart technologies and energy saving measures.

53 EMPLOYEES EDUCATION

CASE STORY THE COMPANY VALUE SHIFTS OASE LIVING-WATER (TAICANG) HELPING POOR STUDENTS IN THE COUNTRYSIDE SOCIAL DIVIDE

SOCIAL CHALLENGE days. Pan, together with some paign. By now, it has managed to IDEAS FOR THE FUTURE Differences between country of his friends, took it upon him- draw in friends and colleagues, The project so far has been and city are a perennial problem self to literally carry books, sport several German companies and very successful at bringing new in China. Anyone who has ever equipment, food and other do- the Chinese communist party partners on board. It intends to had the opportunity to leave the nations to the school. This effort committee in the area where find more partners still – both wealthy cities such as Shanghai, has the additional benefit that OASE is located. As a result, the enterprises and individual par- Shenzhen or Beijing and trav- Pan stays in touch personally project now is well placed to ticipants – so that more children el to the remoter parts of the with the students and teachers. provide help on a much larger can benefit from it. country will have been struck In this manner, he can also make scale than was initially possible. by the contrast between urban sure that the donations actually and rural life. This was also the arrive in the school – and he is in LESSONS LEARNED case for the OASE-employee a position to form a clear idea of The trip to the village remains Pan Chunming. Unlike most oth- what the school might need next challenging and requires career people, however, he decided time. ful preparation. In addition, the that he was personally going to participants soon realized that do something about it. ADDED VALUE they should bring their own food Through his private initiative, so that they would not become PROJECT APPROACH Pan Chunming has been able a burden for the school during In 2012, Pan Chunming became to provide a needy school in an their stay. In order to ensure aware of the plight of a mountain impoverished mountain village that the collected materials will village school in Guangxi Prov- with regular, reliable help – de- actually reach the children, the ince. The village in which the livered by hand. His personal ef- project makes a point to donate school is located is so remote fort, including raising funds and materials in kind and to distrib- that the trip there requires hik- awareness, over time has snow- ute them personally. ing and bivouacking for several balled into a much larger cam-

54 KEY FIGURES

Sector Headquarter Irrigation systems in Germany Hörstel Project start 2012 Active in China since 2007

Employees worldwide in China 750 210

55 EMPLOYEES EDUCATION

THE COMPANY

CASE STORY

SHAREHOUSE (NANJING) AUTHORITIES PFRANG ASSOCIATION SOCIAL DIVIDE

SOCIAL CHALLENGES paper. Moreover, they must pay first nine years of school for time, a group of Pfrang students In theory, every child in China for senior middle school, the ad- financial reasons. Those who visited Nanjing and stayed at has the right to nine years of tu- ditional three years required to are doing well at school can re- the homes of NIS families. NIS ition-free education. In practice, go to university, putting higher ceive funding for a further three also provides the venue for big- many children do not attend education out of reach for many years, making them eligible for ger fundraising events free of school or they drop out early. of them. The challenge is there- university. During the 18 years charge. In addition, the associ- One reason for this, especially fore to help rural children obtain since its inception, the Pfrang ation has partnered with Ami- in rural China, is that schools a proper education. Association has relied on volun- ty Foundation, an experienced are centralized in more dense- teers who donate their time and NGO dedicated to meeting the ly populated areas, whereas a PROJECT APPROACH energy for fundraising. The ma- needs of poor children. The Ger- large number of students live In 2000, all four members of the jority of volunteers are expats man state of Baden–Württem- on farms in isolated villages, of- Pfrang family were murdered by in Nanjing and teachers at Nan- berg supported the association ten so far from their school that burglars in their home in Nan- jing International School (NIS). early on by making the resourc- a daily commute is out of the jing, where they had been liv- Fundraising activities include es in its local office available for question. These students need ing for many years. In order to organizing events, such as ga- use. The Pfrang Association is to live at school and therefore keep their memory alive, their las and sports days, and making now run from the Nanjing office cannot help their families with friends started a charitable or- and selling merchandise. NIS has of Sharehouse, a small German the farm work. Moreover, they ganization, which acts in their become an important partner company, with the assistance of must pay for their room and name: the Pfrang Association. for the association and plays a Julia Guesten, managing part- board, something many cannot The association’s purpose is to central role in its fundraising ac- ner, who has supported the as- afford. This means that a sig- support school children from tivities. Students at NIS have the sociation from the very start. nificant number of students do poor families in rural Anhui opportunity to work closely with not complete the six years of and Jiangsu Provinces, where the association, for instance by VALUE ADDED elementary school and three Nanjing is located. The focus is designing fundraising projects Even when compared with the years of junior middle school mainly on the many rural chil- and visiting students supported charitable efforts of much larger that are compulsory, at least on dren who drop out during the by Pfrang. Last year for the first organizations, the Pfrang Asso-

56 KEY FIGURES

Sector Headquarter Service Industry Nanjing Project start 2000 Active in China since 2013

Employees worldwide in China 10 9

ciation has had an astonishing adds to the challenge. On a posi- impact. In the current school tive note, the number of Chinese year alone, the association is volunteers and donors has been supporting 324 students in 18 increasing over the years. schools in Anhui and Jiangsu Provinces. Over the years, the IDEAS FOR THE FUTURE association has supported over The Pfrang Association would 1,000 students, each of them for like to build an alumni support several years. Many of these stu- system for its students to offer dents have gone on to university. continued support after they complete their education. How- LESSONS LEARNED ever, this will only be possible if The association has been able the association hires paid staff to grow, thus extending its to carry out the required admin- help to an increasing number istrative work. The association of students. Unfortunately, it is is considering ways to generate beyond the scope of the asso- sustainable funding to reach this ciation to provide further as- goal, for instance by cooperating sistance to the students once with a social enterprise. they complete their education, such as offering career advice or making contacts with potential employers. Moreover, the turnover rate of volunteers at the association is relative high since many are expats, which

57 EMPLOYEES EDUCATION

THE COMPANY VALUE SHIFTS CASE STORY

POLITICAL SIEMENS CHINA AGENDA AUTHORITIES ENVIRONMENT SIEMENS I-GREEN EDUCATION PROGRAM – UNIVERSITY STUDENT SUMMER PROJECT

SOCIAL CHALLENGES efforts in education for China’s and environmental protection VALUE ADDED Educational inequality is a pe- migrant children to raise their to the children in the Belt and In its first year, the expanded rennial problem in China. Chil- awareness of science and tech- Road regions in China through program attracted 341 student dren of migrant workers or those nology of environmental protec- university students’ summer so- volunteers from China’s leading in remote and rural parts of the tion. It is a nationwide program cial practices. In 2018, Siemens universities. They taught 1,900 country are especially affected, for migrant children in China’s leveraged the I-Green curricu- hours of I-Green classes and something that exacerbates the primary schools. It aims to raise lum to scale up this program. The carried out additional practical disadvantages they already face their awareness of environmen- company partnered with eight of activities for a total of 214 days. relative to their wealthier and tal protection and scientific inno- China’s institutions of higher ed- They volunteered on site at 18 urban peers. This pertains to vation and help them better inte- ucation, including the country’s locations throughout China in all areas of education, including grate into city life. The program top three universities – Peking, 14 different provinces and re- awareness of the need for en- has been running since 2009. It Tongji and Tsinghua – to create gions involved in the Belt and vironmental protection and the involves thousands of Siemens and fund teams of student vol- Road Initiative. Their efforts science and technology relating volunteers and benefits tens of unteers. These volunteers are benefitted more than 5,700 pri- to it. Given that nearly half of thousands of schoolchildren. giving summer courses, based on mary and secondary students in China’s population lives in ru- Siemens has also used the pro- the I-Green curriculum, to teach- poor, rural areas. The program ral settings, it is a massive chal- gram to develop a custom-made ers and students in primary and reached an additional audience lenge. Addressing it will require I-Green curriculum, which has middle schools in rural China. of 170,000 through social media effective support for individual been further refined over the At the same time, the teams are campaigns. It also created many schools, not to mention possibil- years. Each year employee vol- invited to modify and extend the connections between urban col- ities for scaling such help. unteers teamed up and gave curriculum based on their own lege students and rural families. I-Green lectures at schools. Le- expertise and on specific on-site In addition, it made university PROJECT APPROACH veraging I-Green curriculum, needs. The idea is to utilize the students more aware of social As one of the education projects, the I-Green University Students initiative’s momentum, while and environmental challenges. I-Green Education Program is Summer Project focused on also contributing to it by empha- a flagship project of Siemens’ bringing the concept of science sizing environmental issues.

58 KEY FIGURES

Sector Headquarter Electrical Engineering in Germany and Electronics Berlin

Project start Active in China 2018 since 1872

Employees worldwide in China 377,000 32,000

LESSONS LEARNED and adapt them to the specific Siemens paid special attention needs on site. In addition, a men- to ensuring there was effec- torship program will be launched tive communication between in 2019. This means that experi- universities and rural schools. enced Siemens volunteers will This was important so that the take part as mentors to provide college students’ willingness to professional support and guid- help could be channeled in ways ance for student teams. that are actually useful and meet the real learning needs of rural students. In addition, Siemens volunteers have been involved in the project throughout, supporting it with their expertise. The results show that the communication between these three groups is crucial and that it needs further improvement.

IDEAS FOR THE FUTURE In 2019, the project will be expanded to support 10 teams from 10 universities. Based on the I-Green curriculum, university students will be invited to upgrade and modify the courses

59 EMPLOYEES ENVIRONMENT

CUSTOMERS

THE COMPANY CASE STORY SIG COMBIBLOC VALUE SHIFTS (SUZHOU) AUTHORITIES VOC EMISSION REDUCTION PROJECT

SOCIAL CHALLENGES tifying ways to reduce the VOC ers SIG’s project exemplary and CO2 emissions. Specifically, it Over the past decades, China’s emissions of its own production promotes it as a model of best aims to reduce its environmental economic success has been processes. The company invest- practice. Meanwhile, SIG shared impact by 50% by 2030. Being a nothing short of spectacular. But ed more than RMB 10 million to its project design with other player in the packaging industry, this has come at a cost: environ- modify its production lines and companies and with government SIG also intends to increase its mental degradation and destruc- to install a new treatment sys- authorities, further increasing share of recyclable packaging to tion, which are unusually severe tem for its emissions. In order to the program’s reach and impact. 100% by 2020. in China. This is especially true maximize the impact, SIG took with regards to air pollution, and great care to select the best sup- LESSONS LEARNED it has reached the point where plier. In the end, it chose the US- It is crucial to evaluate offers Chinese cities are known around based company TANN, as it was from suppliers very carefully. the world for their unhealthy air. able to supply and install one of Not all suppliers can deliver While many initiatives – both the most advanced treatment what they promise, so it is im- governmental and private – are systems available today. portant to look at the details of underway to remedy this prob- each proposal and get to know lem, there are so many contrib- ADDED VALUE the suppliers on site. Data col- uting factors that addressing it SIG Suzhou managed to reduce lection and analysis are equally requires all stakeholders to do its VOC emissions by more than important. In addition, it is advis- what they can. 900 tons per year while simul- able to plan a certain buffer with taneously reducing the envi- regards to production. PROJECT APPROACH ronmental impact of its printing Volatile organic compounds processes. It has therefore been IDEAS FOR THE FUTURE (VOC) emitted during produc- able to contribute significantly The company will continue to tion processes are contributing to the overall emission targets in work to minimize its environ- to air pollution. Therefore, in Jiangsu Province. The provincial mental footprint resulting from 2016, SIG Suzhou began iden- government of Jiangsu consid- waste, energy consumption and

60 KEY FIGURES

Sector Headquarter Aseptic packaging for Neuhausen food and beverage Active in China Project start since 1985 2016

Employees

worldwide in China 5,000 830

61 EMPLOYEES SOCIAL DIVIDE

COMPETITORS

THE COMPANY CASE STORY TAICANG VALUE SHIFTS INCLUSION FACTORY SUPPLIERS FLEX MECHANICAL INCLUSIVE FACTORY

SOCIAL CHALLENGES PROJECT APPROACH employment. The partnership of challenges comes in the form of The majority of people in China The Taicang Inclusion Factory is Taicang Inclusion Factory with concerned family members who with intellectual, mental or phys- a long-standing project that was Flex Zhuhai ensures to create fear that their children may not ical disabilities live in poverty, founded to provide precisely more jobs for people with men- be able to perform the task. The and relatively few are gainfully this kind of education and train- tal disabilities, eleven of whom second challenge is posed by the employed. Even though laws ing. The factory has been oper- are now employed by Flex. Do- daycare units for people with in- have been passed and admin- ating since 2015 and over the ing genuinely useful work not tellectual disabilities;these day- istrative measures taken in the years it has gradually expanded only boosts self-esteem, it puts care units provide activities and past two decades which have had its programs to provide more the new employees in a position as registered daycare units they some positive impact, the situa- comprehensive support for peo- to support themselves and their are financially supported by the tion remains difficult. Although ple with disabilities. In 2017, it families. government which entitles them there are now more than 3,000 teamed up with the company to provide their protégées with employment service centers in Flex Zhuhai to develop a joint LESSONS LEARNED a monthly subsidy. The families China for people with disabilities, program, the Mechanical Inclu- In its initial phase, the Taicang are afraid to lose the subsidy if the jobless rate remains daunt- sive Factory (MIF), launched Inclusion Factory largely fo- they will try to enroll their chil- ing. The challenge is to give peo- in October 2018. MIF is now a cused on designing the curricu- dren in any place other than the ple with disabilities the chance manufacturing unit within Flex lum and facilitating cooperation day care. to participate in the workforce. where all the operators are peo- with various stakeholders. The This enables them to earn a living ple with intellectual disabilities. partnership between the Inclu- IDEAS FOR THE FUTURE while engaging actively in soci- sion Factory and Flex Zhuhai The aim is to create the condi- ety. It also means they can devel- VALUE ADDED are an important part of this tions that will allow the Taicang op their professional and social The main purpose of the Taicang development. While having a Inclusion Factory to be replicat- skills and, ultimately, improve Inclusion Factory is to provide daily work routine ensures a so- ed across China. The workshop their quality of life. Education quality vocational training for cio-economical safety for Flex’s will continue to expand its pro- and job training are a crucial part people with disabilities, along employees the program faced grams and partnerships in order of achieving this goal. with opportunities for gainful many challenges. One of the to achieve that goal.

62 KEY FIGURES

Sector Headquarter Welfare Company Taicang

Project start 2018 Active in China since 2014

Employees worldwide in China 35 35

63 EMPLOYEES EDUCATION

COMPETITORS CASE STORY

THE VOLKSWAGEN COMPANY AUTOMATIC URBANIZATION TRANSMISSION TIANJIN CUSTOMERS WORK2WORK INTERN PROGRAM

SOCIAL CHALLENGES ees with performance impair- The internship program begins VALUE ADDED As the most populous country ments. This can include impair- with a campus tour for the can- The internship program in Tian- in the world, China also has the ments due to sickness or injury; didates, including talks with jin is still new and will finish its largest number of people with it also includes people with dis- people with disabilities who are pilot round with 12 interns in disabilities, approximately 83 abilities. In order to enhance already VW employees in Tian- July 2019. The degree to which million individuals. Although the program, VW Automatic jin. Further, there is an Open the program will be extended progress has been made in inte- Transmission in Tianjin start- Day where the undergraduates will be determined over time as grating people with disabilities ed the Work2Work Internship can visit the plant, gaining a first- the project develops. It is already into society, the situation re- Program in 2018 in cooperation hand impression of the work- clear, however, that all partic- mains challenging. This pertains with the Faculty of Engineering place and the products before ipants benefit from the pro- to virtually all aspects of every- for the Deaf at the University of they interview for an internship. gram. It is good for VW Tianjin, day life, and it is especially true Technology in Tianjin. because the company can train of the situation on the job mar- During the internship – which and develop the right candidates ket. Unemployment rates among The internship program is meant lasts between three and six before employment. Similarly, disabled people in China are to help disabled undergraduates months – the students receive interns gain experience at a rep- very high. The problem is deeply experience a real work environ- feedback from HR multiple utable multinational company ingrained and there is no quick ment and social inclusion before times. Feedback is also made and get the opportunity to fur- fix. Over time, however, many in- full employment at a company. available to their university. This ther develop their careers. dividual efforts can add up, mak- Additional objectives are to facilitates cooperation between ing a real difference. provide the undergraduates VW and the Faculty of Engineer- LESSONS LEARNED with a realistic appreciation of ing and improves the program The project is running as PROJECT APPROACH workplace requirements, equip on an ongoing basis. planned, although it has The Work2Work project is a them with practical skills and emerged that communication long-standing program carried give them direct feedback, all of can be challenging. The company out at Volkswagen worldwide to which will be useful on the job continues to train the relevant create opportunities for employ- market upon graduation. business managers on site, espe-

64 KEY FIGURES

Sector Headquarter Automotive Industry in Germany Wolfsburg Project start 2018 Active in China since 2012

Employees worldwide in China 650,000 97,000

cially with regards to objectives and giving positive feedback to the interns.

IDEAS FOR THE FUTURE The company plans to extend the internship program by forming partnerships with additional universities in Beijing and Changc- hun. Expanding the scope by adding partners could create synergies throughout China, increasing inclusion of university students with disabilities.

In addition, as a founding member of the Global Business and Disability Network China, VW Tianjin will share its experiences with the other member organizations to further promote inclusion throughout the country.

65 EMPLOYEES EDUCATION

THE COMPANY CASE STORY

WACKER CHEMICALS SOCIAL DIVIDE (CHINA) AUTHORITIES LONG-TERM READING-COMPANION

SOCIAL CHALLENGES In 2017, Wacker volunteers VALUE ADDED LESSONS LEARNED As a very active enterprise in started to support the facility Every two months, four to six During the book management China, Wacker possess a lot of by setting up a library there. Wacker employees engage in a project, Wacker employees no- insight in local communities. The volunteers stayed in touch two-hour reading session with ticed that the children needed Especially “grassroot” projects with the orphanage and soon the children. Six sessions for more encouragement to become promise to have far reaching realized that an effective sys- orphans between the ages of 6 interested in reading. It was positive consequences for Chi- tem was lacking for managing and 8 have taken place so far, im- not enough to simply put some na’s society. At the same time the new library and that many proving the children’s interest in books in front of them, if they companies face the bigger chal- books had remained unpacked. books and their reading abilities were not familiar with everyday lenge, namely identifying and This prompted the volunteers by providing reading companion reading. Special care was neces- tapping the potential of a large to continue their work at the and arranging handworks relat- sary to develop their interests number of people. How can orphanage by setting up a book ed to the stories they read. To and habits in reading. There- companies access input and management system for its li- support its employees in their fore, the concept of a long-term then effectively plan and design brary. Gradually, they realized volunteer work, Wacker is grant- reading-companion program socially useful projects that have that many children lacked the ing every employee one day was developed. This sustainable an impact? motivation and encouragement yearly of paid leave and a yearly project was well received by the to read, so it became clear what travel allowance of RMB 150 to teachers. PROJECT APPROACH the project’s next step should participate in charitable activi- To maximize its social input be: launching a reading-compan- ties. Wacker has also supported IDEAS FOR THE FUTURE Wacker runs a variety of pro- ion program for the youngsters. many other schools throughout Sustainability is a key principle grams to support schools and China by donating books, set- of Wacker CSR. The Shanghai children in need all over China. ting up libraries and establishing Children’s Home Reading Sup- In doing so, it makes a point to sponsorships for poor students. port Program will be a long-term value long-term commitments. It even rebuilt a primary school project. New projects to further Shanghai Children’s Home, an in Sichuan after the region was support the education of chil- orphanage, is a prime example. struck by a major earthquake in dren will be implemented in the 2008. future. 66 KEY FIGURES

Sector Headquarter Chemicals in Germany Munich Project start 2017 Active in China since 1993

Employees worldwide in China 14,500 1,000

67 CASE ABSTRACTS

ADIDAS KAERCHER CLEANING TECHNOLOG AICHELIN KERN-LIEBERS ALBA KNAUF NEW BUILDING MATERIAL B. BRAUN KPMG BASF LANXESS BAYER MANN+HUMMEL BEIERSDORF MANN+HUMMEL FILTER BHS CORRUGATED MACHINERY MARQUARDT SWITCHES BOC (LINDE) MERCK DISPLAY MATERIALS BOSCH MOLLERTECH BOSCH REXROTH MR CHINA BROSE MUBEA BRÜCKNER NINGBO BRANOPAC BUURTZORG NINGBO SILK TREND GARMENTS CELANESE NOK-FREUDENBERG OILSEAL CENTURY 3 NORD-LOCK CHANGSHA BACH‘S BAKERY PORSCHE CONTINENTAL PULCRA SPECIALTY CHEMICALS DHL GLOBAL FORWARDING RENYI YONG CHUN KUNGFU CENTER DR. BECKMANN – DELTA PRONATURA ROSE PLASTIC DRÄXLMAIER GROUP SAIC VOLKSWAGEN DURAVIT SAP LABS EVONIK SCHAEFFLER FAURECIA CLEAN MOBILITY SIEMENS FESTO TAICANG DAWT FIDUCIA TAICANG ROUNDTABLE GRAND KEMPINSKI THYSSENKRUPP HAERING PRECISION TROLLI HARMONY SHANGHAI TÜV RHEINLAND HELLA CORPORATE CENTER WAGO ELECTRONIC K.D.F. DISTRIBUTION ZAMA PRECISION INDUSTRIES

68 69 CASE ABSTRACTS

ADIDAS ADIDAS SCHOOL FOOTBALL PROGRAM

Since 2015, adidas has worked closely with the MOE to achieve tangible successes in sports development for youths. By Jun 30th 2018, adidas has provided resources to the MOE’s training of over 17,000 teachers and supported its summer and winter training camps for approximately 3,000 children. adidas has also donated more than 180,000 balls to over 3,000 schools across the country, enabling over 1 million students to enjoy football. On July 11th 2018, adidas and MOE announced the expansion of a successful partnership for the next three years to promote China’s school sport development and bilateral sport exchange between youths. Under the extended partnership, adidas will support the promotion and development of youth football and basketball leagues, competitions, elite training camps, and other events and activities. adidas will also play an important role in continuously promoting innovations in sports education and lead coach-to-coach trainings with its vast global resources and experience. Aligned with the purpose and vision of jointly promoting friendly exchange and cooperation of youths between China and Germany, adidas will facilitate youth sport exchange programs, such as friendly matches and training camps, as well as collaborations between the MOE and top German football clubs and youth sport institutions. adidas will also remain committed to supporting poverty-alleviation projects as part of the newly signed MOU.

AICHELIN HEAT TREATMENT SYSTEMS (BEIJING) WINDOW ON THE WORLD FOR LITTLE SWAN PUBLIC WELFARE ELEMENTARY SCHOOL

In Chinese cities, the household registration system known as hukou governs access to social services ranging from medical treatment to public child care and education. Since migrant workers are not granted a hukou at their place of work, their children cannot go to public school, with dire consequences. Migrants have therefore begun establishing their own schools to ensure their children get the nine years of education that are considered the minimum in China. These institutions face a serious lack of funding and expertise and, as a result, they require outside help. The Little Swan School in Beijing is a case in point. Its headmaster, Yan Zhaoshi, is a volunteer who gave up his job as an engineer to work on behalf of the school and its around 300 pupils. Aichelin “adopted” the school in 2017. Since then, the company has been supporting it by donating desks, tables, PCs, laptops, books, supplies and storage space. Aichelin’s volunteers also offer extracurricular courses and activities. For example, they take the students to soccer matches, and they offer a series of lectures called “Window on the World.” Migrant workers and their children often suffer from isolation and a lack of opportunities to participate in society. The activities and lectures are therefore designed to give the children a wider perspective.

70 ALBA BERLIN BASKETBALLTEAM LANGUAGE & BASKETBALL

Fostering dialogue between people from different cultures is important, especially in today’s globalized world. Alba Berlin uses basketball as a tool for intercultural exchange. The first event in China, a basketball weekend, took place in 2013 at the Ger- man School in Shanghai Hongqiao. Since then, the company has regularly organized similar events at other locations, such as the German Embassy School in Beijing, the Swiss German International School in Hong Kong and Tongji University in Shanghai. In 2016, the project expanded to the Kindergarten level, with a first teacher’s workshop in Shanghai, and in 2018, the first two basketball and language camps for Chinese student groups took place in Berlin. Its tournaments in Beijing, Shanghai and Hong Kong reach several hundred students each year. Alba also continues to co-host PASCH basketball tournaments. PASCH, which is short for “partner schools,” is an international network of more than 2,000 schools that have a connection to Germany. There are about 120 such schools in China. Their students are the main beneficiaries, improving their language skills while simultaneously engaging in professional basketball training and tournaments organized by ALBA.

B. BRAUN MEDICAL (SHANGHAI) INT’L TRADING RUN FOR LOVE – B. BRAUN HALF-MARATHON CHARITY RUN

As part of its long-standing program to help children with cerebral palsy, B. Braun organized half marathons in 24 cities throughout China. These charity runs took place on October 20, 2018. More than 1,000 employees and their families participated, raising RMB 42,000. The proceeds support the treatment and education of children in need at the Xuhui CereCare Center in Shanghai. Run for Love is part of the B. Braun for Children program, which has been assisting children with cerebral palsy since 2014 The company provides support in a variety of ways, including through monthly employee visits to the children and annual events for all employees – such as Run for Love – that raise funds and awareness.

71 CASE ABSTRACTS

BASF BASF’S GOODWILL TEACHER PROGRAM

Chinese students face great pressure in their exam results beginning from their early school days. Extracurricular training is therefore a necessity for every student. This is an especially grave problem for students of less wealthy families. Since 2005, BASF supports the Shanghai Association of Persons with Physical Disability in their initiative “Intellectual Assistance to the Disabled”, where BASF employees teach oral English classes. Every Sunday the students attend a 40 minutes class at Shanghai Shinan Middle School. In addition BASF established a scholarship program in 2006 for students participating in the Goodwill Teacher program. Up until today 440 teenagers from 420 families benefited, some even graduated from university and studied abroad. The scholarship profited 285 teenagers with a volume of RMB 413.000 yuan and 380 BASF employees volunteered as English teachers in the Goodwill Teacher program.

BAYER (CHINA) BAYER CHILDREN CARE PROGRAM

Helping children in need is obviously a worthy cause, and Bayer has built its corporate social responsibility programs around it, both in China and internationally. This includes cooperating with and supporting NGOs, promoting volunteer activities and education programs, and collecting and making donations. For example, Bayer China’s internship program Plant Your Future is designed to benefit young people with mental disabilities by providing them with job training at Bayer. Another case in point is Bayer’s Grant4Impact program. Its aim is to identify and fund start-ups with a social angle – to help leverage social innovations outside of the company as well. Bayer also supports ill-equipped schools by donating used computers from the company. In order to make sure that Bayer’s Green IT Classroom project really is “green,” the company and its partners make sure that once these computers reach the end of their life cycle in the schools, they will be disposed of in an appropriate and environmentally friendly way. In 2018, Bayer’s various programs relating to child care in China reached more than 2,600 beneficiaries.

72 BEIERSDORF WE CARE – EDUCATION, CHILDREN, YOUTH

We Care is Beiersdorf’s global program to involve its employees worldwide in its activities promoting ecological sustainability and social responsibility. In 2018, the theme in China was education, children and youth. This included raising funds for teaching materials for children in need, for instance through the company’s Christmas events benefitting impoverished children. It also included support for projects which improve literacy and education in Tibet. In cooperation with the international student organization Enacts, Beiersdorf also provided training for university students to improve their chances on the job market after graduation. The single biggest component of Beiers- dorf’s education programs in China in 2018 was the Campus Innovation Competition, which leverages the ingenuity of college students to tackle social issues among disadvantaged groups. Still ongoing, the competition involves seven teams of university students, mentored by Beiersdorf volunteers, which develop concrete, actionable plans to address social issues. Beiersdorf has committed RMB 210,000 to this project. The winners will be chosen in March 2019.

BHS CORRUGATED MACHINERY (SHANGHAI) DUAL VOCATIONAL EDUCATION TRAINING PROGRAM

A lack of practical training and skilled workers in China is a long-standing problem, both for companies and for young people looking for employment. This is why BHS began expanding its own training program in October 2016. The program is modelled on Ger- many’s successful “dual approach” to vocational training, which combines practical skills and theoretical knowledge. There are currently 39 students taking part in BHS’s dual training program. Local teachers and German teacher-trainers are working on site to develop the curriculum and ensure its quality. As a next step, BHS will open its program to external companies and institutes and extend it across several provinces in China. The goal is to strengthen the concept of dual training in the country and, ultimately, help companies hire skilled workers and young people find good jobs.

73 CASE ABSTRACTS

BOC CHINA HOLDINGS (MEMBER OF THE LINDE GROUP) HYDROGEN FUELING STATIONS FOR CLEANER BUSES AND CARS IN CHINA

Linde is a world leader when it comes to building and operating hydrogen fueling stations (HFS). To promote hydrogen as the ul- timate renewable energy in China and Asia, Linde and its Chinese joint-venture partners are attempting to build an HFS network in Shanghai. Since 2017, they have been investing in, building and operating “filling stations” for fuel-cell buses and passenger cars in the city. In order to maximize the impact, Linde is focusing on particularly relevant routes or “corridors” through the city, including the bus lines linking Shanghai Chemical Industrial Park also known as “SCIP”, and other public transportation hubs to promote the clean mobility agenda across the region and country. Linde and its partners aim to establish three to five such stations in Shanghai by 2020 and 15 to 20 by 2025. Ultimately, the target is to build a network of stations throughout the Yangtze River Delta – an area with approximately 80 million inhabitants.

BOSCH (CHINA) INVESTMENT DEPLOYING CO2 REDUCTION AND ENERGY EFFICIENCY IN BOSCH CHINA

Recognizing climate change as a global challenge, Bosch decided to reduce its relative CO2 emissions by 35 % in 2020 compared to 2007. Bosch China has actively implemented energy efficiency activities in the region. Through an internal CO2 reduction network and sharing platform, a self-assessment on CO2 maturity model for all locations and conducted peer assessment on energy saving potentials. Many energy efficiency projects have been implemented in Bosch China locations, e.g. Zhuhai plant utilized free cooling. Qingdao plant installed online energy management platform which helps to realize energy supply on demand and achieve energy saving. Those proved projects have been transferred across Bosch China locations. In 2017, Bosch China had reduced its relative CO2 emissions by 48.3 % compared to 2011, and increased its production of renewable energy by 18.8 % comparing to 2016.

74 BOSCH REXROTH (BEIJING) HYDRAULIC VOC TREATMENT SYSTEM FOR IMPROVING AIR QUALITY IN BEIJING

Although Bosch’s facilities in Beijing already met Chinese legal requirements for waste gas emissions, the company took the initiative and further improved its performance – quite dramatically. The challenge mainly pertained to volatile organic compounds (VOC) generated by the firm’s painting line. Bosch installed a new VOC treatment system in the second half of 2017. Since then, the company has managed to reduce its VOC emissions by more than three-quarters, from 9.3 tons to just over two tons. Bosch’s successful effort has been recognized with numerous awards. Since the company utiliz- es advanced methods for its VOC treatment, it has also become a benchmark for similar projects elsewhere in China.

BOSCH REXROTH (BEIJING) HYDRAULIC GOGREEN @PKP

Energy efficiency and the reduction of CO2 emissions are important goals everywhere, and they are especially urgent in China, where urbanization and industrialization are happening at unprecedent- ed scale and speed. The Chinese government remains committed to achieving the targets set out in the Paris Climate Agreement. At the same time, individual companies are also called upon to do their bit. This is why Bosch Rexroth continues to run its long-standing GoGreen initiative. The project managed to reduce CO2 relative emissions at Bosch Rexroth in Beijing by no less than 70 percent between 2009 and 2018. It did so by optimizing its production processes, by implementing energy-saving projects and by educating its workforce.

75 CASE ABSTRACTS

BROSE MILLION TREE PROJECT

Soil erosion has become a major problem for grassland ecosystem. Local herders and farmers are threatened with the loss of their livelihoods as desertification progresses at an alarming rate. Brose collaborates with the Shanghai Roots and Shoots Million Trees Proj- ect in order to counteract this trend. Together, the partners have planted 22,000 trees in Inner Mongolia and Ningxia in the last three years. This effort has reduced carbon emissions by about 8,900 ki- lograms and slowed desertification. Raising awareness is also an important part of Brose’s program. The company therefore organizes public lectures to help local residents better understand the extent of desertification and its consequences. Brose and Roots and Shoots also make a point of including the local population in the project – especially in the planting, maintaining and monitoring of the trees – to better integrate the project within the community, thus making it more sustainable.

BROSE CHANGCHUN AUTOMOTIVE SYSTEMS SPONSOR CHANGCHUN CHILD WELFARE HOME

Since 2006, Brose Changchun sponsors the Changchun Child Wel- fare Home. Brose visits and sends festival greetings to the kids while also providing the Welfare Home with various necessities. The donations represent the will to improve the children’s life environment. The general manager of Changchun plant Mr. Yin Shixian is the main actor inside and outside the company. While improving the children’s life it also creates a positive image of Brose in China.

76 BRÜCKNER GROUP (CHINA) YES, WE CARE

Although plastic poses a serious challenge to the environment, modern society is heavily dependent on its use, since it is a lightweight substance that is both stable and durable. Yet those same characteristics also make it a threat to the environment. Brückner is part of the plastics and packaging industry, which is why the company cares about the proper use of plastic. In 2017, Brückner started its Yes, We Care initiative at all its locations worldwide, including in China. The initiative’s goal is to help minimize the environmental impact of plastic production and use. It does this by implementing a comprehensive program for waste reduction and separation, continuously improving production cycles and optimizing energy efficiency. Brückner is equally committed to further adapting its service portfo- lio in order to further extend the reach of its recycling program – so that the advantages of using plastic can be maximized even as the disadvantages are minimized.

BUURTZORG NEIGHBORHOOD CARE ASIA BETTER CARE AT HOME AT LOWER COST

Until fairly recently, children in China were expected to care for their elderly parents. This has become increasingly difficult, since China is no longer an agrarian society and integrating work and family life is far more of a challenge than in the past. Because of the country’s One Child Policy, moreover, each married couple now needs to assist four parents. Further, China is aging rapidly and may become the first country to get old before it gets rich. Buurtzorg Neighborhood Care addresses this problem with a care model designed to enable old people to live in their own homes and communities as long and as independently as possible. Nurses are trained in setting up and orchestrating individualized care for each patient, in addition to addressing medical needs. This means making use of informal networks, such as family members, neighbors and volunteers, while accessing the formal support available from care workers, community hospitals and doctors. Buurtzorg’s ICT system also plays an important role, since it provides a tool for managing the entire care process and ensuring its quality. This is especially important in China, where nurses generally lack experience in home care, since most education and training still takes place in hospitals. In the past three years, 4,000 patients have already benefited from Buurtzorg’s home-care program. This year, the company will be active in 9 cities in China, providing care to elderly in need in their communities. It plans also to start up the Buurtzorg Academy to train nurses, care workers and family members specifically in meeting home-care needs.

77 CASE ABSTRACTS

CELANESE (CHINA) HOLDING HANDMADE BEARS FOR SHANGHAI BABY HOME

In most respects, China is no longer a developing country. Even so, public services are not yet consistently available, and this is especially true in the area of public health care. People without financial means are often unsure of where they can obtain even essential medical help. Nobody is as penniless as an orphaned infant, which is why Cel- anese decided in 2018 to support Baby Home, an NGO in Shanghai, by providing money, marketing expertise and toys. This activity marks the 100th university of Celanese core value “Improving the world. The company donated roughly $32,000 to Baby Home to make it possible for three orphaned infants to undergo surgery. Company volunteers have also made 300 teddy bears by hand, partly for the orphans cared for by Baby Home, partly as gifts given to others to raise awareness of the infants’ plight. Celanese sees its cooperation with Baby Home as a long-term partnership and part of the company’s overall volunteer challenge. Worldwide, Celanese employees have volunteered nearly 400,000 hours of their time for charitable causes since 2013.

CENTURY 3 (SHANGHAI) BETTER SCHOOLS AND BETTER HOMES

Century 3 began sponsoring rural schools in China’s remote Yunnan Province in May 2018. As a first step, a team of employees visited the schools in question and equipped them with refurbished computers. Next, the team developed computer labs and regular training sessions to increase digital literacy at the schools. In addition, Century 3 used its initial school project to scale up its efforts and establish a standard procedure for refurbishing computers no longer used in its offices and donating them to rural schools. In a separate project also carried out in 2018, volunteers from Century 3 participated in a house building program organized by global non-profit organization Habitat for Humanity to provide adequate housing for impoverished families in Vietnam. Two hundred volunteers from Century 3 worldwide joined forces as part of the project to build houses for 20 families.

78 CHANGSHA BACH’S BAKERY EMPLOYMENT OF PEOPLE WITH HEARING IMPAIRMENT

Since 2011, Bach’s Bakery is training and employing deaf people in China. From 2011 until 2014, German master bakers and confec- tioners conducted the training which is now overseen by Uwe Bru- tzer, the company’s owner, who already had experience in hearing and speech training for deaf children. The program is funded by the income generated by Bach’s Bakery, meaning the project supports itself. It brings the trainees to a skill level that enables them to work in other bakeries later on. Providing the participants with a useful skill like this improves their working and living conditions and increases their self-esteem. It also makes it possible for them to support themselves and their families.

CONTINENTAL AUTOMOTIVE CHANGCHUN GOVERNMENT-ENTERPRISE COOPERATION AND PRECISION POVERTY ALLEVIATION

One of the challenges when making donations is ensuring that those donations make sense. This is why Continental Changchun launched a program that takes a grassroots approach. Carried out together with the Red Cross and local governments as partners, the program aims to alleviate poverty in underdeveloped villages in Jilin Province. During the pilot project, Continental focused on Xishun Village and, especially, its 23 poorest households. Nobody knows a village like the people who live there, which is why Continental invited the local village committee to design programs tailored to address actual needs in the community. Continental then funded these programs with a donation of RMB 40,000. The money went towards medical aid, the creation of job opportunities that fit the skills on site, the purchase of the necessary equipment and a range of similar measures. In 2018, the company and its partners applied the same approach to support renovation work at Changbaishan High School, making a donation totaling RMB 50,000. In 2019, Continental will expand its program for poverty alleviation.

79 CASE ABSTRACTS

CONTINENTAL AUTOMOTIVE SYSTEMS (SHANGHAI) LEGO CLASS

Continental Automotive Systems Shanghai has a long-standing partnership with Loutang Primary School, where most of the students are children of migrant workers. Continental makes regular donations to the school and to individual students. The company also promotes the school among its employees, many of whom are themselves migrant workers. Since March 2018, 29 employee volunteers from the plant lead by the plant manager and the department heads have been teaching monthly “Lego classes” at the school. Topics include Chinese history, biology and aerospace engineering. The students from 9th to 11th grade learn about these topics before and build theme based model creations using Lego bricks. In addition, the volunteers from Continental give the school a “big face,” both under- lining that the company is committed to supporting the school and creating awareness.

CONTINENTAL AUTOMOTIVE CHANGSHU CORPORATE SOCIAL RESPONSIBILITY @ HBS CHANGSHU PLANT CHINA

In 2017, Continental Changshu began supporting the local branch of the China Women’s Federation by joining its Carnation Project. The aim of the project is to help women in need, for instance single mothers and cancer patients. Continental donated RMB 50,000 to the project. The same year, to encourage its employees to gain experience volunteering, the company started its Love and Blood Donation campaign, during which 166 employees donated blood. In December 2017, the Changshu plant manager and other volunteers also visited the local orphanage to distribute toys and candy to the children there. The visit, which was covered in local media and social media, was meant to raise awareness of the orphanage and its cause. In the future, Continental Changshu intends to involve more employees as volunteers. In addition, the company plans to donate laptops and to build a library for a primary school attended by the children of migrant workers.

80 CONTINENTAL TIRES (CHINA) RTO AIR TREATMENT PROJECT

In the process of tire manufacturing, certain emission will be generated. So why not build a plant that makes the emission much cleaner? This is precisely what Continental Tires did in China. The cor- nerstone of the project was the installation, completed in 2018, of technology that treats the emission and sharply reduces the content contained in it. A recent investment of Continental tires Hefei plant is an equipment called a regenerative thermal oxidizer (RTO). While the company has always made a point of implementing best practices at its facilities in China and elsewhere, installing the RTO helped Continental to further purify the air at the Chinese plant to 5 mg per cubic meter. This is well below the standards set by regulators both in China and in the EU. RTOs are currently the most advanced technology for air treatment. The company is committed to its social responsibility, and by investing in advanced clean technology, it aims to build an environmentally friendly and leading technology tire plant.

DHL GLOBAL FORWARDING (CHINA) GOGREEN – ONE, TWO TREE!

The demand for timber and the transformation of woodlands into farmland are long-standing factors driving deforestation in China. Since the 1980s, urbanization has become the new leading factor shrinking China’s forests. The consequences, often drastic, include soil erosion and rising CO2 levels. Helping local communities restock their woodlands is a crucial element in counteracting this trend. That is why DHL has set itself the goal of planting one million trees every year worldwide. As part of this effort, DHL Global Forwarding China planted 1,000 trees in five Chinese cities in 2018. DHL covered the costs while its partners selected the sites, provided the tree-planting expertise and oversaw the required training. The project is part of DHL’s GoGreen, GoTeach and GoHelp initiative, which enables the company’s employees to shape a better future for their communities.

81 CASE ABSTRACTS

DR. BECKMANN DELTA PRONATURA ORANGE BACKPACK PROGRAM

There are approximately 4.6 million children with hearing impair- ments in China. This causes a multitude of problems, often resulting in children falling victim to traffic accidents. In order to remedy this, Audiology Development Foundation in China established “Orange backpack program” on March 3, 2016. Delta Pronatura (Nanjing) joined this program on 2018. The donation of a bright backpack aims to increase the children’s visibility to reduce the likelihood of traffic accidents. In addition, the partners saw to it, that all backpacks are filled with crayons, colors and other painting equipment. Continu- ously More than 500 offline stores will present the Orange Back- pack program in different cities, which will let more people know, understand, and participate in this program. Delta Pronatura (Nanjing) also supports 34 primary and junior high school students in Nanjing with scholarships and will increase the number of participants in future.

DRÄXLMAIER CHINA YOUTH SKILLS UPGRADING PROGRAMME

The transition from university to workplace is a big step and a real challenge. The soft skills required at work are not necessarily learned at university. According to a recent survey, many students are aware of this challenge and wish to improve their soft skills. This is why Dräxlmaier began organizing lessons in soft skills and good office behavior in 2018. In cooperation with the Li Zhou Commonweal organization, Dräxlmaier offered three hours of training for college students with the joint participation of employee volunteers. The first class had 30 students and was very well received by the participants. Youth Skills Upgrading Programme is one of the social responsibility programmes of Dräxlmaier China, officially launched in 2018, Dräx- lmaier plans to extend the program to additional students, offering one training course per quarter. This will be beneficial for everyone involved: Dräxlmaier will make contact with outstanding students, while the students will be able to improve their standing in China’s competitive job-market and better integrate with society.

82 DURAVIT (CHINA) SANITARYWARE SUSTAINABLE DEVELOPMENT EDUCATION

Environmental protection is essentially about good stewardship and ensuring we can pass on an intact, or at least livable, environment to our children – who will bear the same responsibility once they grow up. If they are to succeed, they need the right education. This is the motivation behind Duravit’s project designed to help youngsters learn about sustainable development. Since 2018, Duravit has been collaborating with the Xing Wang Primary School in Chongqing, a vast megacity in central western China. As a first step, the project began raising awareness among the students at the school, partly through classroom activities, partly through visits to the Chongqing Natural History Museum. The visits are organized with the help of Duravit volunteers who also act as tour guides for the students. The museum tours focus on biodiversity and on the relationship between human activity and nature. As a next step, Duravit set up a “green multi-media classroom” at the school and furnished it with fully functional second-hand computers no longer needed at the company’s offices. Duravit’s IT department got the equipment up and running, from laying cables to installing software. It is also providing ongoing tech support. The project is still new and Duravit will use the experience gained to extend the project’s scope in the future.

EVONIK INDUSTRIES EVONIK CONTRIBUTES TO A SUSTAINABLE DEVELOPMENT IN CHINA

As a leading specialty chemicals company, Evonik is well placed to address issues around environmental protection. Evonik operates with the same standards globally and ensures 100% compliance with local laws and regulations. With the goal to reduce environmental impact, Evonik gives priority to intelligent processes to improve production processes, utilize resources more efficiently and optimize waste management. Our efforts in China include a system to monitor soil and groundwater conditions, improvements in waste management and optimizations of production processes at all Evonik sites in China. Overall, Evonik China reduced its greenhouse gas emissions by 9% in the period from 2012 to 2018. During the same period, waste-water quantity fell by 54% and fresh water consumption fell by 35%. In addition, Evonik opened an environmental process lab in Shanghai, in 2013. This lab provides pilot-scale experimen- tal testing facilities for verifying and optimizing environmental processes. It produces solutions for both current and forthcoming investment projects in Asia.

83 CASE ABSTRACTS

FAURECIA CLEAN MOBILITY CLEAN MOBILITY MONTH

In September 2018, employees of the Asia Pacific Division engaged in a one-month sport challenge all around Asia that supported one of Faurecia’s core missions: fighting air pollution to improve air quality. Employees were encouraged to walk, hike, run and use their bikes as often as possible, for instance on the way to work or together with friends and colleagues on weekends. The contest pursued several objectives at once: It promoted a healthier lifestyle among employees and encouraged them to reduce their carbon footprint. There were five competing teams in total, one each from India, Japan, Korea and Thailand and one from the Shanghai headquarters. The total distance covered by employees during the month was converted into donations to local NGOs addressing environmental issues. In Shanghai, donations went to Shanghai Roots & Shoots, an organization running several projects focusing on sustainable development in China. The Shanghai team’s donation amounted to RMB 4,000 – corresponding to 160 trees planted in Inner Mongolia to curb desertification, offset carbon emissions and stimulate the local economy. Faurecia plans to further develop the challenges by improving the digital app used for the event, enabling employees to share their distance covered while hiding their itinerary. It also hopes to find external sponsors, thereby enhancing the competition’s funding. Moreover, the rules will be revised so that each activity is a separate category, e.g. running, cycling and walking/hiking.

FESTO CHINA PARTNERSHIP WITH WORLDSKILLS FOR DEVELOPING OCCUPATIONAL EDUCATION IN CHINA

As the largest international skills competition, WorldSkills allows young people from across the globe to compete and be recognized as the best of the best in their chosen vocational area. China first joined WorldSkills in 2010. In 2012, Festo began cooperating with the Chinese Ministry of Human Resources and other authorities to support Chinese teams. A long-standing partner of WorldSkills, the company has since been selecting, equipping and training the best Chinese teams for the competition. Since China has been involved, Festo has sponsored all major WorldSkills China events by proposing rules and providing equipment and technical support. In addition, Festo and its Chinese partners initiated the mechatronics competition at WorldSkills Chi- na in 2012. The Chinese team trained by Festo won a silver medal at the WorldSkills competition held in Brazil in 2015. Two years later, at WorldSkills 2017 in Abu Dhabi, the team trained by Festo China won a gold medal, the first China has received at a WorldSkills mechatronics competition. Even more significant than winning medals is the fact that more and more people in China are becoming aware of occupational skills and their significance.

84 FIDUCIA MANAGEMENT CONSULTANTS (SHANGHAI) FIDU-SHARE

Social issues in China are varied and wide-ranging: growing elderly population, serious environmental problems, and imbalances in social and economic development, to name but a few. This is why Fidu- cia encourages its employees to take part in CSR activities through its Fidu-Share campaign, running since 2010. The campaign consistently enlisted 20% of the company’s employees, partnered with over 20 NGOs in Beijing, Shanghai and Shenzhen. In 2018, responding to the increasing engagement of its employees, Fiducia introduced a dedicated Fidu-Share ‘Ambassadors’ team to empower volunteers to create even more opportunities for giving back. For example, volunteers in Beijing started supporting the Fu Ti Yuan Retirement Home, while in Shanghai we took part in tree planting to support the city’s goal to set up 30 country parks by 2040. Fidu-Share also supports children in need with scholarships to enable them to complete their education.

GRAND KEMPINSKI HOTEL SHANGHAI KICK OFF – FOOTBALL PROJECT

The children of migrant workers in Chinese cities often do not have equal access to regular education. Instead, they have to make do in cheap private schools operating in a legal grey zone. These schools are typically underfunded and struggle to provide the bare necessities. This is why the Grand Kempinski Hotel Shanghai and its partners started the Kick Off project in 2016. It provides physical education (PE) classes and football training to migrant school children in Shanghai. PE is especially important for them, because they usually study in overcrowded classrooms with up to 60 children per class. The project is providing PE classes and football training to about 3,000 children at eight schools. In addition to the regular classes and training sessions, the partners have organized numerous events, including stadium visits in Shanghai and tournaments between the participating schools.

85 CASE ABSTRACTS

HAERING PRECISION (TAICANG) SINO-GERMAN FRIENDSHIP KINDERGARTEN

Most parents in China work full time, making child care challenging, especially if grandparents cannot provide support. In addition, Chinese-German families often find it difficult to decide if their children should attend a Chinese or German kindergarten. In order to address both problems, Haering Precision opened a Sino-German kindergarten in 2016. The kindergarten received support from the German Consulate in Shanghai and the Taicang Economic Development Area, with the German School Shanghai providing training for the educators. More than 30 children now participate in the kindergarten’s program, which runs for two and a half years. An additional 10 children have already “graduated” to primary school. Although the kindergarten is bilingual, it adheres to German educational standards. Integrating these standards into a Chi- nese environment has proven somewhat difficult, but continuous adaptation and the inclusion of Chinese elements has helped address the situation. In the future, Haering intends to establish a more comprehensive Sino-German platform to further improve educational outcomes and increase mutual understanding.

HARMONY SHANGHAI CULTURE & ART COMMUNICATION INTERNATIONAL COMMUNITY DANCE PROJECT THE FOUR SEASONS

Even though China’s largest cities have become far more international in the past decades, it is still surprisingly difficult for international students to become acquainted with Chinese families and vice versa -- they tend to live in parallel worlds. This is why Harmony Shanghai established the Community Dance Project in 2012. It is to foster cooperation between Chinese and international students. Each year, the dance classes consist of more than 100 students from different countries and with very different backgrounds. People with disabilities as well as the children of migrant workers perform together with students from Chinese and international schools. In 2018, Harmony Shanghai organized the 4th Community Dance Project to rehearse and perform Vivaldi’s Four Seasons for 160 Chinese and international students. During their time together, the dancers acted as a team, helped each other, became friends – unimpeded by differences of nationality, class or health.

86 HELLA CORPORATE CENTER CHINA HELLA LIBRARY PROJECT

The Hella Library Project works to improve children’s literacy in rural areas and to provide educational resources for teachers in underfunded primary schools and orphanages. The program, which Hella launched together with its partner, the China Population Welfare Foundation, began in May 2018. So far, the Library Project has set up libraries and reading rooms in two elementary schools in Anhui and Fujian Province, reaching about 2,000 children and well over 60 teachers. In this first phase of the program, Hella has donated about 4,500 books for children aged 6 to 12. In the future, Hella plans to extend the scope of the program beyond the two provinces in which it is active so far.

HELLA CORPORATE CENTER CHINA HELLA UNIVERSITY COOPERATION

It can be advantageous for both sides when technical universities cooperate with companies which make practical use of technological skills such as engineering. The companies benefit, because they come in contact with new talent, and so do the students, since working in the “real world” is a great opportunity to learn. The advantage for the educational institutions is that they receive feedback on the usefulness of their curricula. There is also a wider benefit, since partnerships between universities and companies tend to increase overall innovativeness. For all these reasons, the automotive part supplier Hella has been cooperating with 10 Chinese universities since 2011. The roster of partners includes some of the country’s best higher education institutions. Hella has now supported about 1,000 students through scholarships, internships and practical projects, as well as competitions, for instance in the field of intelligent manufacturing. The company will continue this project and will be creating a new program to support school children as well.

87 CASE ABSTRACTS

K.D.F. DISTRIBUTION (SHANGHAI) LUPIN FOSTER

Children who suffer from illness or disability in China often do not have a straightforward path to obtaining medical treatment if they are orphaned or if their parents can’t afford it. This pertains to medical issues that are relatively easy to address, such as cleft lips, as well as to chronic and potentially life-threatening problems such as congenital heart disease. To address this problem, a group of Chi- nese K.D.F employees set up the Lupin Foster relief fund and began raising money for orphaned children in need of medical treatment. K.D.F. has been supporting the fund since 2017 by paying for the treatment of several children, covering their living expenses and financing regular follow-up visits. So far, K.D.F. has donated RMB 168,000 to pay for medical treatments and other expenses for four children.

KAERCHER CLEANING TECHNOLOGY (CHANGSHU) DOUBLE NINTH FESTIVAL ACTIVITY FOR ELDERS

The Double Ninth Festival, observed on the ninth day of the ninth month, is an important traditional holiday in China and other countries in East Asia. Some elderly people have children who do not have the time to visit during the holiday. As a result, Kaercher and its Chi- nese partner Liu Shui Qin Chuan organized the Double Ninth Festi- val Activity to help such seniors in Changshu City. During the event, more than 100 elderly people and 200 volunteers participated in different group activities, such as singing, playing games and visiting the local opera. The goal of the project was to show respect and provide care for seniors, and to acknowledge the traditional value of xiao or filial piety. Kaercher plans to continue the program in the future.

88 KERN-LIEBERS TAICANG TAICANG GERMAN INDUSTRIE-MEISTER TRAINING CENTER (DTIT)

Finding skilled workers is a perennial problem for companies in Chi- na. This is why in 2018 Kern-Liebers Taicang introduced vocational training modeled on the German program for master craftsmen (Meister). Combining theory and practice, the program includes classroom training, online coursework and practical projects. Kern-Liebers developed the program, which is supported by the German Chamber of Commerce in Shanghai, after collecting suggestions from other well-known German companies in Taicang. The German Chamber of Commerce will issue master craftsman certificates for the trainees who pass the final examination. The aim is to train production supervisors, foremen, team leaders, shop floor management personnel and internal trainers. This will help companies find skilled staff while allowing employees to improve their standing at work.

KNAUF NEW BUILDING MATERIAL (WUHU) KNAUF BLUE

Transport is one of the main contributors to carbon emissions – the others being industry, energy and buildings – and logistics account for a significant amount of today’s transport activities. This is why Knauf China is increasing its carbon efficiency, a move that is in line with Knauf’s green supply chain management. In practice, this means that Knauf gives increasing weight to environmental factors when selecting its suppliers and its modes of transport. For instance, in 2017 Knauf shifted a major part of its ship- ments – 900,000 tons of material – from road to water transport. This measure alone kept 3,350 trucks off the road, equivalent to a traffic jam 1,000 kilometers long. In addition, Knauf is gradually increasing the share of natural-gas-fueled trucks in its fleet. Intermodal transport is another key factor, especially in terms of reducing cargo han- dling, since it improves security, reduces pollution and allows freight to be transported faster. Knauf also addresses the environmental impact of packaging material. It has re- placed wooden pallets with scrap plasterboard and adjusted the position and quantity of packing belts and gaskets in its operations. The company intends to integrate the expertise thus gained by Knauf China into its global logistics operations.

89 CASE ABSTRACTS

KPMG CHINA CSR INNOVATION PROJECT COMPETITION

Busy university students in China have little time to volunteer or participate in projects that address social problems. In spite of this, many students are passionate in driving positive change in society by developing innovative ideas – when given the chance. This is why KPMG initiated the Innovation Project Competition in 2016 along with its partner, the Youth Development Center, a Shanghai-based NGO. The project provides a platform for university students to learn about Sustainable Development Goals, develop their creative potential by proposing community programs that address social and environmental challenges. KPMG China employees take part as interviewers, mentors and judges, using their professional knowledge and skills to assist students with their proposals and helping turn those proposals into reality. So far, more than 3,000 students have participated in the program and 144 especially promising young leaders have been trained in the field of CSR. In the coming years, KPMG aims at invit- ing other corporate to join and encourage them to involve students in their own CSR programs.

LANXESS CHEMICAL (CHINA) LANXESS/GOETHE-INSTITUT PARTNERSHIP

The partnership between Lanxess and the Goethe-Institut supports promising students from the cultural institute’s partner schools in China. The goal is to prepare the students to study the natural sci- ences (particularly chemistry) at university and, subsequently, to begin a career in the chemical industry or a related field. To achieve this goal, the company has been providing selected students with internships since 2011 and has been awarding them scholarships since 2013. The internships and scholarships help the students bring their linguistic and science-related knowledge up to speed so they can attend university in Germany. Scholarships have been awarded to 16 students to date, and six recipients are now studying in the Federal Republic. In addition, 12 students have completed internships at Lanxess. The company is working to continually improve the program, for instance by creating new mentoring opportunities for the interns and by increasing support for the students in Germany.

90 MANN + HUMMEL (CHINA) WIX POWER

Migrant workers from rural China often leave their children behind when they seek employment in the city. Some 60 million children have at least one parent working away from home, while 9 million have two parents who are absent. Mann+Hummel has gotten involved to help these children. In 2018, the company began a project to support a primary school in Guizhou Province, the home province of many migrants who work in the Pearl River Delta. The project has raised RMB 100,000 so far. Together with its partner, the Lingshan Charity Foundation, the project has organized teacher training, opened a library, sponsored student meals and equipped the school with basic furniture, such as chairs, tables and bookshelves.

MANN + HUMMEL FILTER (SHANGHAI) CHARITY CYCLING EVENT

When it comes to philanthropy, the call to action can be particularly effective if you have a clear idea of whom you are helping. This is certainly the case with the charity cycling event that Mann+Hummel organized in November 2011. During the event, Mann+Hummel volunteers made donations to assist a young boy who lives with his impoverished family in a mountain village in Guizhou Province. Funds from other Mann+Hummel events are helping the boy’s family to finance his education so he can attend university. The company has similar programs for other families. In addition to financing the education of children from poor families, the project also assists children facing health challenges.

91 CASE ABSTRACTS

MARQUARDT SWITCHES (SHANGHAI) THE POWER OF GIVING

Many schools in rural China are woefully underfunded. These further increases the disadvantages rural children in China face compared to children from urban families – as a good education is the most effective way to escape rural poverty. Marquardt supports the Moujiayao Primary School in Gansu Province, one of the most economically underdeveloped parts of China, through financial and material donations. From November 2018 to present, Marquardt has collected over RMB 45,000 in donations through individual and team efforts and used the money to buy necessities for the students and their school. The purchased items included 180 thermos flasks, since winters in Gansu are extremely cold. They also included three printers and three computers, enabling the teachers to print out textbooks for students free of charge. Finally, the donations were also used to buy a slide for the school’s playground. The slide has been installed at the beginning April 2019 – as a surprise for the children after the winter vacation. As a next step, Marquardt will organize second-hand book donations, to improve the school’s library. The project also aims to build personal relationships between the students and Marquardt’s employees and their families. Finally, the funding platform Marquardt established to finance the project’s initial phase proved effective and the company will continue using it while extending its cooperation with the school.

MERCK DISPLAY MATERIALS (SHANGHAI) GREEN CRYSTAL PROJECT

Many schools in China’s less prosperous regions lack basic computer equipment. Learning even simple IT skills is not part of the curriculum as a result. At the same time, many people don’t know what to do with their old tablet computers when they acquire newer models, so their old devices either remain unused or are disposed of in an environmentally hazardous way. Merck addresses both issues. The company encourages its employees to contribute redundant but still functional tablets to its Green Crystal Project, which then donates them to rural schools in China. All tablets are upgraded and equipped with educational software. Merck’s NGO partner Pad for Hope trains the schools’ teachers to maintain and manage the devices. To date, 50 second-hand tablets have been donated. In addition, Merck volunteers have visited two schools to give lessons on scientific subjects. In 2018, the company set up its Online Volun- teer Platform, which allows employees to give additional classes via Internet without having to travel to the schools. So far, 80 volunteers from the company have contributed 4,500 hours for volunteer classes at the schools, helping more than 1,200 students. In the future, the company expects that 50 volunteers will participate each year in the platform, reaching over 600 students annually while volunteering about 1,200 hours of their time. Merck plans to expand the project with the goal of involving more partners and more schools.

92 MOELLERTECH AUTOMOTIVE PARTS (LANGFANG) ENVIRONMENTAL PROTECTION

Air pollution is among the most serious challenges in China. This is why MoellerTech has always made a point to keep its emissions well below what is legally required. For instance, even before the company began its latest environmental project, its emissions in China already 90 percent lower than the regulatory standard. In 2017, MoellerTech decided that they can do still better and invested in new equipment to further reduce emissions of volatile organic compounds (VOC). The new VOC collection and treatment system now reduces MoellerTech’s emissions by a further 40 percent. This means that overall, the company’s waste gas emission is now at a mere 4 percent of the volume deemed acceptable by the government. Moel- lerTech will continue to invest in improvements of this kind.

MR CHINA MR PRIMARY SCHOOL LIBRARY

China is a country of continental proportions, and even now some of its remoter regions remain isolated to a surprising degree. This is the case, for instance, in some parts of Yunnan Province, in China’s deep south-west. This is why MR China is carrying out a project to support schools in rural Yunnan. The project began in 2011, when MR China partnered with the Chinese newspaper 21st Century, which helped identify the right school, Dilu Primary School, to receive assistance. The partners began supporting the school by creating a library, donating teaching materials and providing scholarships. They also arranged for lessons to be taught by volunteers. They provided support for five years, at which point they ascertained that conditions in the school had improved to a satisfactory degree. In 2016, this time acting on its own, MR China began assisting another school, Chele Primary School, in the same region and in a similar manner. So far, more than 60 MR China volunteers have participated in the project there. While support of this kind does not always need to be extensive to be effective, the company would like to extend the program’s scope so that more children can benefit from it. As a result, MR China is now looking for partners, such as NGOs and other companies, to scale the project.

93 CASE ABSTRACTS

MUBEA AUTOMOTIVE COMPONENT (TAICANG) MUBEA HELPS FOUNDATION – GIVE PERSPECTIVES, ENSURE THE FUTURE

“Give perspectives, ensure the future.” The company’s 100-year anniversary in 2016 was the starting point for the newly established Mubea Helps foundation, launched in Germany and the US with a total foundation capital of €1,000,000. Mubea China approached the project through the Taicang Gov- ernmental Charitable Foundation with a start-up investment of RMB 500,000, focusing on education for children and young people. When an employee donates RMB 1, the company also donates 1 RMB, doubling the amount and encouraging more employees to get involved in this charity project. With the Mubea Helps foundation, the company aims to support people in need or those who through no fault of their own find themselves in a crisis situation. It also supports developmental aid and education for youth. For example, it carries out a series of activities, such as Mubea Grants which assists 24 students from low-incomes families, and the Transition Program, together with partners of Taicang Special School and Inclusion Factory, to aid two students with intellectual disabilities so they can better integrate into the labor market in the future. In addition, its Continuity Planning supports talented students on their future educational paths, since they often face the problem that their long-term study journey is blocked if they come from a low-income family. In the future, the company will further promote and actively expand its social engagement.

MUBEA AUTOMOTIVE COMPONENT (TAICANG) TAICANG KIDS FOOTBALL – YOUTH HEALTH CARE

“The most important thing about football is that it is not just football.” In keeping with this motto, the Taicang Kids Football project, initiated in 2018, aims to provide an international platform for more and more Taicang youth to get to know football and fall in love with this sport. Together with other foreign companies, Mubea launched and organizes weekly training sessions in Taicang, held in English by professional coaches. The participating children include kids from low-incomes families. The youngsters are very enthusiastic during the training sessions, gradually finding their own understanding of the rules and better integrating into the whole team. It’s a good chance for them to learn about football in a fun and effective way, while building physical strength and health, courage and endurance, not to mention team spirit, which further boosts the development of kids football in Taicang. We will continue to expand the project, providing more chances for kids to get involved in Taicang.

94 NINGBO BRANOPAC IMPORT AND EXPORT TRADE SHANGHAI YOUNG BAKERS

For disadvantaged young adults who had to drop out of school because of their family situation the costs for education is high enough that many of them cannot afford it. This also applies to vocational training. The organization Shanghai Young Bakers is helping to overcome this problem by offering free training to economically disadvantaged teenagers enabling them to find qualified jobs and lead independent lives after graduation. One subsidiary of the packaging company BRANOpac with four employees in China is supporting the program by providing its own premium baking paper to cover the program’s needs. This support, together with sponsorships and financial contributions, ensures that the young apprentices receive a solid education.

NINGBO SILK TREND GARMENTS POLYMAX SUMMER KINDERGARTEN

A pressing problem in China is that children of migrant workers rarely get to see their parents, who are away from home most of the time. Since 2009, Polymax has been ensuring that its migrant-worker employees in Ningbo can spend at least two months a year with their children. It does this by holding a summer camp for the children in July and August at the company itself. During the camp, Polymax organizes daily activities for the children, including visits to the zoo and museums, and picnics in the park. The children also meet the local fire brigade and talk with policemen and nurses, which is both fun and educational. Qualified teachers are on site to look after the children every day, and the firm turns a floor in the company building into a classroom, while making equipment for arts and sports available. This means the children are looked after while their parents are at work, and the families are together the rest of the time. All children have a need to be with their parents, which is why the company makes this possible for its employees for two months every year. The result is happier children and parents. This in itself is important to the company’s owners and management. It also benefits the firm, because it makes it easier for employees to balance family life and work.

95 CASE ABSTRACTS

CHANGCHUN NOK-FREUDENBERG OIL SEAL (CNF) SPECIAL CARE FOR SPECIAL CHILDREN

Since 2017, employees of Changchun NOK-Freudenberg Oil Seal (CNF) started the charity activities in the Rehabilitation Center for Disabled Children of Jilin Province, where children with autism/cerebral palsy and down syndrome are taken care of. As volunteers, our employees visit the kids termly and join their parent-child game and Halloween Party and other activities. We bring them food, play games and give performances. Obviously, on the one hand interac- tion with volunteers and all kinds of activities make children’s lives more colorful, and on the other hand, that’s beneficial to their re- covery. In 2018, CNF donated a new classroom, taking the special needs of the children into consideration. It is important to take on the responsibility to integrate these children into modern society not only as an obligation but also because these children deserve to be loved and taken care of. We realized that the kids fit into society become more and more important when we started this project. The program will also bring more attention to the special children.

NORD-LOCK (SHANGHAI) DRAWING COURSES FOR PEOPLE WITH DISABILITIES

Life in China can be a challenge, and many people struggle to get by – something that is especially true for people with disabilities. As a result, in 2018 Nord-Lock began cooperating with Sunshine House, a school in Shanghai where people with disabilities can participate in art classes once a week. Nord-Lock chose Sunshine House as a partner because it is a well-established school that is also well integrated into the community in which Nord-Lock is situated. The result is a good fit for a long-term partnership. Nord-Lock not only provides funds but also materials for the art classes.

96 PORSCHE (CHINA) MOTORS PORSCHE “EMPOWERING THE FUTURE” YOUNG CHINESE ARTIST DEVELOPMENT

Succeeding as an artist, especially as a young artist, is not easy, which is why mentoring has always been crucial to the arts. In 2010, Porsche China began partnering with the Sichuan Fine Arts Institute to organize an annual art contest called “Empowering the Future.” The contest provides a forum for young artists which allows them to gain experience and find an audience. Since 2017, Porsche has donated for the programme Porsche “Young Chinese Artist of the Year” (YAOY), which is organized by the Cc Foundation and supported by ART021 Shanghai Contemporary Art Fair, aiming to find and support the most innovative and pioneering new young artists in China, and to encourage them to advance in the exploration and practice of their art. The 2018-2019 YAOY Nominee’s Exhibition will be presented in May 2019 at Beijing, with the theme of “What is it that makes today’s LIFE so different”.

PULCRA SPECIALTY CHEMICALS (SHANGHAI) PULCRA STUDENT AID

The Shanghai Petrochemical Academy is a well-known vocational school located in Shanghai Jinshan District. . When Pulcra learned that students – including some of the academy’s best – sometimes have to drop out because their families cannot afford to pay for their education, the company began partnering with the school to remedy the situation. Since 2017, Shanghai Petrochemical Academy has selected 20 of its best students who are struggling financially each se- mester and Pulcra has supported them by giving them scholarships. Not only does the company plan to expand the program in the future, it will also help scholarship recipients further their careers once they have graduated.

97 CASE ABSTRACTS

RENYI YONG CHUN KUNGFU CENTER VIOLENCE FREE ZONE AT SCHOOL

Einstein said that “education is what remains after one has forgot- ten what one has learned in school.” And what could be more useful than acquiring skills for conflict resolution and for understanding how to keep a cool head even under pressure? That is why the 31 kung fu instructors at the Renyi Yong Chun Kungfu Center decided they could genuinely help school students by giving them kung fu lessons. Learning kung fu is beneficial since it can reduce bully- ing and violence in school. Since 2012, the center’s instructors have visited schools and taught more than 600 students. In contrast to the image presented by action movies, martial arts are much more about achieving a state of mental stillness and preventing violence. In addition kung fu helps to develop the confidence to face problems without resorting to violence. As kung fu is also about protecting loved ones, practicing it raises children’s awareness of social groups and encourages them to pay closer attention to the situation of their friends and classmates.

ROSE PLASTIC (KUNSHAN) ROSE PLASTIC R3 (REDUCE, RECYCLE, REUSE)

Rose Plastic’s production facilities in China are located in a residen- tial area in Kunshan City, Jiangsu Province. There are also several schools in the neighborhood, which makes it important to go the extra mile and pay close attention to the facility’s performance with regards to health, safety and the environment. In short, Rose acts as a good neighbor. To further improve its record, the company started its R3 Project in 2018. The three R’s stand for “reduce, recycle and reuse.” To reduce the amount of water pollution resulting from its business activities, Rose Plastic cleaned its rainwater and sewage network and installed a control valve which detects leakage, ensuring rainwater and wastewater no longer mix. In addition, the company reduced its noise emissions, increased its recycling activities and raised awareness of the relevant issues among its employees. As a result, waste at the company has been reduced by approximately 50 percent each month. The company also started a volunteer program to increase awareness in schools and other public institutions.

98 SAIC VOLKSWAGEN AUTOMOTIVE WASTE MANAGEMENT PILOT PROJECT

After four decades of economic growth at extraordinary rates, China now has the largest industrial output in the world. While this is an astonishing success story from which many Chinese citizens have benefitted, it has also put a massive strain on the environment. SAIC Volkswagen is doing its bit to remedy this situation. For instance, it launched a new pilot project for waste management at its car plants in 2018. The aim of the project is to reduce waste by increasing recycling and reuse. This is done by optimizing the relevant equipment and by training all employees to classify waste accordingly. SAIC Volkswagen works to integrate these and other waste-saving strategies into its daily operations so that the program is of long-term benefit. By the end 2018, the project had reduced waste by 300 tons through recycling and reuse. In addition, employees and partners are being encouraged to take individual action as part of the project. In the future, SAIC Volkswagen will continue to increase the project’s scope.

SAP LABS CHINA SAP LABS CHINA DIGITAL SOCIAL INNOVATION FOR SUSTAINABILITY

The goal to find new innovative solutions to modern problems is pursued by SAP with the help of start-ups, NGOs, authorities and SAP’s employees digital expertise. The platform of SAP Labs Digital Social Innovation created a meeting point for SAP employees and externals to create digital innovations to achieve this goal. SAP Labs China Digital Social Innovations strongest programs address environmental, as well as physical and psychological health issues. In terms of environmental protection, SAP Labs addresses the struggle with antibiotics overuse in the poultry farms. In 2017, SAP Labs China began to develop ways to apply Artificial Intelligence (AI), machine learning and the Internet of Things to the early diagnosis of livestock disease, reducing the mortali- ty rate of chickens by 10 percent. Digital solutions can also be applied to health issues of humans. Around 1 million people die from lung cancer each year in China. Sap Argus program is a smart pre-screening solution for lung cancer based on machine learning solutions helping to find lung cancer at early stages to dramatically improve survival rates.

99 CASE ABSTRACTS

SCHAEFFLER HOLDING (CHINA) “ELECTRIC RACING DREAM” COMES TRUE

The production of greenhouse gasses is one of the major challenges of our time. E-mobility has an important role to play in addressing this issue. Realizing its full potential means generating awareness of and interest in the topic. Most of all, it means promoting research and development at all levels. This is why Schaeffler continues to be one of the leading players in Formula E racing. One way in which the company supports e-racing is through its cooperation with the young Chi- nese engineers on the DIAN racing team. The team is affiliated with the Automotive College and the New Energy Center at Tongji Univer- sity in Shanghai. Since 2015 Schaeffler provides technical assistance and in-depth consulting and by supplying parts for the new racing car which DIAN develops each year. Through Schaeffler’s support, the students gain exposure to market trends, access to cutting-edge technology, and they get the chance to run a project on their own. Schaef- fler sees this as an investment in the future and a direct contribution to expanding the talent pool in the e-mobility sector.

SIEMENS LIMITED CHINA ELECTRICITY SAFETY FOR TRADITIONAL VILLAGE

Usually taken for granted, electrical safety requires quality equipment that is installed by competent technicians. These prerequisites are frequently lacking in the world’s remoter areas, something that is also true of many Chinese villages. This is why Siemens, together with its partners, has upgraded the electrical infrastructure in Yang- po, a village in China’s southwestern Guizhou Province. Siemens donated RMB 60,000 worth of electrical equipment, such as low-volt- age distribution boxes, lighting switches and sockets, to upgrade 20 old buildings housing 42 families. Company employees traveled to the village to install the equipment and train local workers. Siemens will provide additional training to local residents including electrical engineers. It also plans to extend the project to other villages.

100 TAICANG GERMAN TECHNICIAN TRAINING CENTER (DAWT) TTT (TRAIN THE TRAINER) FOR TAICANG SINO-GERMAN HANDICAPPED WORKSHOP

The majority of people with intellectual, mental and physical disabilities in China live in poverty, and relatively few are gainfully employed. The TTT for Taicang Sino-Ger- man Handicapped Workshop is a long standing project that was founded to provide precisely this kind of education and training. The Workshop is operating since 2015, and over the years, it has gradually extended its programs to provide more comprehensive support for people with disabilities. Its cooperation with the Taicang German Technician Training Center (DAWT), started in 2017, is a recent addition. DAWT provides a teacher training program for the benefit of the Handicapped Workshop. The training includes topics such filing, sawing and other fitting skills, basic measurement devices, reading and understanding technical drawings, practice for using different tools to assemble parts as well as pedagogical skills. So far, the courses have been held twice, most recently during an 8-day workshop in March and April 2018. The Taicang German Technician Training Center(DAWT) will continue to hold annual programs for teacher training with the Taicang Handicapped Workshop.

TAICANG ROUNDTABLE SINO-GERMAN CULTURAL EXCHANGE

There are more than 300 German-based enterprises in Taicang, and many of them have both Chinese and German employees. To increase intercultural exchange and strengthen the dialogue between the cultures, Taicang Roundtable is organizing the annual October- fest since 13 years. Since 2006, Taicang Roundtable is in charge of organizing the venue, live music and the catering for the 5 to 6 days long event. In 2018, nearly 1400 guests visited the Octoberfest every day. In addition, 2 German symphony orchestras visited Taicang in 2018, and their performances laid the foundation for further cultural exchange. The project is co-financed by the Taicang High-tech Industrial Development Zone.

101 CASE ABSTRACTS

TAICANG ROUNDTABLE ESTABLISHED TAICANG ENGINEER ASSOCIATION

The German dual vocational training system has already produced many certificated technicians in China. But these technicians only possess a certificate that is acknowledged in Germany. As this proves to be an inconvenience, the Taicang Roundtable initiated the founding of the Taicang Engineer Association. The official start of the Association was in November 2018 and already the association has more than 80 members and 15 experts from different German and Chinese enterprises. Their goal is to provide professional technical consultation, educational training and conducting additional qual- ification of engineers for Taicang based European enterprises. The Association’s aim is to ultimately gain Chinese acknowledgment of the German certificate, so that dual vocational trainings will lead to a Chinese and German certificate. In the future, the Taicang Engineer Association plans to cooperate with Suzhou Municipal Human Re- sources and the Social Security Bureau to match the certificates.

THYSSENKRUPP ELEVATOR (CHINA) TKEC – SUNSHINE 365 FUND

The tkEC Sunshine 365 Fund started out in 2012, it was meant to provide support for the company’s employees when necessary. For instance, in cases of serious diseases, damages to families caused by natural disasters,deaths and other projects requiring care. Over time, the tkEC Sunshine 365 Fund has extended its scope and increasingly includes public welfare as well. These public contributions include, for instance, book donations for children in poor areas in China, construction work on campuses and dissemination of elevator safety knowledge. As a company with a deep sense of social responsibility, tkEC intends to further continue its contributions to public welfare.

102 THYSSENKRUPP ELEVATORS THE FROZEN BOY’S LOVING BOOKSTORE PROJECT

Due to the lack of jobs in rural areas, many villagers leave their hometown, and their children remain behind to live with grandparents or in school dormitories. These children are known in China as “left-behind children” and there are approximately 60 million of them. The Frozen Boy’s Loving Bookstore Proj- ect was inspired by a photo of a young boy standing in a classroom with his head and eyebrows covered in snow. The picture caused a stir in China, calling attention to the plight of students at rural schools. Consequently, the boy became known in Chinese media as the “Frozen Boy.” ThyssenKrupp employee Liu Dexiang in Kunming noticed that the Frozen Boy was from his own hometown in Yunnan Province. As a result, he contacted the principal of Zhuanshanbao Primary school. Through this first contact we learned that the students were short on children’s books and more than 80 percent of the pupils are left-behind children. He reported this situation to the public welfare project team of TKEC Sunshine 365 Fun. The project team launched the Frozen Boy’s Loving Bookstore Project. Since then, the Frozen Boy’s Loving Bookstore Project has donated more than 6,234 books to expand the library at the Frozen Boy’s school. It has also provided a number of other essential items, ranging from school bags and toys to bookshelves, computers and teaching materials. In the future, the company will extend its program and sponsor meals for needy students at Zhuanshanbao Primary School, as their families are often unable to provide them with breakfast.

TROLLI GUANGZHOU CONFECTIONERY SAVING POWER & GAS SAVING IMPLEMENTATION

The company focuses strongly on its Zero Waste Policy. To reduce its gas and energy consumption, Trolli worked together with water treatment, refrigeration system and air compressor specialists. To- gether they found new solutions to reduce energy consumption and energy lost from the boiler, refrigeration system and air compressor system. Many of the solutions were implemented in 2017 and 2018 and new projects are planned for 2019. The projects have led to in- tensified efforts to reduce energy consumption elsewhere. The implemented measures have already begun saving energy – up to 15.6 percent, for example, in electrical power from the air compressor system.

103 CASE ABSTRACTS

TÜV RHEINLAND (SHANGHAI) DEVELOPING THE NEXT AMBASSADOR OF GREEN LIVING

The negative effects of climate change and environmental pollution can already be seen around the world. Changes in attitude and behavior are a precondition for rem- edying the challenges stemming from these problems. The best way to effect such change is through education – especially early education. This is why TÜV Rheinland collaborated with the All-China Environment Federation to create a comic book that tells six stories about recycling, garbage classification, hazardous waste treatment, green travel, wildlife protection and the conservation of the oceans. In the summer of 2018, the company also partnered with Zhonggu Charity to organize interactive classes on environmental protection at Nan You Primary School in Yunnan, using the comic book to increase awareness among the children there. With the help of Sowers Action and the ICTI Care Foundation, copies of the comic books were also donated to orphanages and schools in Yunnan and Sichuan, and to an after-school center in Qin- gyuan. Currently, the books mainly feature urban scenes. In the future, TÜV Rheinland and its partners will adapt the stories to rural environments, so that students in village schools can fully benefit from them as well.

TÜV RHEINLAND (SHANGHAI) I FLYING – RURAL TEACHER TRAINING

Teaching is a highly attractive profession in China and comes with respect and status – in theory. In reality, many teachers are struggling, especially in the country’s less economically developed western regions. This is especially true of rural areas, where many teachers face challenging conditions: too many students, inadequate pay, and schools underequipped to a degree that people in cities like Shanghai would find hard to imagine. As a result, many young teachers, especially those with above-average training, avoid positions in the remoter parts of China, preferring cities instead. To help overcome this problem, TÜV Rheinland supports a teacher training program for village teachers, together with its partner, the Shanghai East China Normal University Education Development Foundation. In 2018, 153 teachers in total joined the I flying program. TÜV Rheinland supported 4 teachers from Yunnan and Sichuan, making it possible for them to participate in a teachers’ seminar in Shanghai – a form of advanced training that would otherwise not have been available to them.

104 WAGO ELECTRONIC (TIANJIN) CARING FOR SPECIAL GROUPS, TOGETHER WITH LOVE

Most people have the impulse to do good, and employers are well placed to make use of this desire, giving it coherence and direction. This is why Wago China set up its Community Service Volunteer Club in 2016. The club formed partnerships with well-established NGOs, which volunteers can join to support work at hospitals and at schools for children with disabilities. The volunteers provide assistance in a number of ways, such as teaching classes, raising funds, donating gifts and playing with children in need. Since 2018, Wago has also provided internships for young people with disabilities to help them gain the skills necessary to support themselves. Wago will continue to develop its Volunteer Club and to extend its network of partners.

ZAMA PRECISION INDUSTRIES (HUIZHOU) ZAMA VOCATIONAL TRAINING

Highly advanced production operations require highly skilled workers, but Chinese vocational and technical schools often struggle to provide curricula and training methods that are in sync with what is actually needed in the workplace. In 2015, ZAMA joined with three other German companies to launch a vocational training program based on the German educational system. So far, 90 people have participated in the program. Students are recruited from two Chinese schools, the Dongguan Technician College and the Huizhou Engineering Technology College, while the teachers come from Bildungswerk der Wirtschaft in Berlin und Brandenburg. Since the program aims to establish an approach based on the system of “dual vocational education” used in Germany, which combines practical skills and theoretical knowledge, German profes- sionals on site play an important role in training both students and teachers. ZAMA’s program also provides students with a stipend, insurance coverage and money to cover transportation and accommodation costs. The assistance amounts to RMB 100,000 per student over a period of three years.

105 IMPRINT

Bernhard Bartsch Dr. Sigrid Winkler Senior Expert Executive Chamber Manager Program Germany and Asia Phone +86(0)21- 5081 2266 ext. 1605 Phone +49 5241 81-81569 [email protected] [email protected] www.bertelsmann-stiftung.de/asien German Chamber of Commerce in China | Shanghai Bertelsmann Stiftung 29/F Gopher Center Carl-Bertelsmann-Straße 256 No. 757 Mengzi Road Huangpu District 33311 Gütersloh 200023 Shanghai, China Germany German Chamber of Commerce Editorial team in China | North China Bernhard Bartsch Unit 0818, Landmark Tower II Anika Sina Laudien 8 North Dongsanhuan Road Friederike Grubba Chaoyang District Justus Krüger 100004 Beijing, China Tim Schroder Yuhan Zhu German Chamber of Commerce in China | South & Southwest China Design 1903B Leatop Plaza Markus Diekmann, Bielefeld 32 Zhu Jiang East Road Katja Guenther Tianhe District Jan Schwochow 510620 Guangzhou, China

Photo credits Jan Voth E.G.O. Components (Chinese and English Cover) Thanks to all companies for providing great project photos

www.morethanamarket.cn | [email protected]

106 The More than a Market Initiative would not be possible without the intensive work of many individuals at the German Chamber of Commerce in China, Bertelsmann Stiftung, the German Embassy and Consulate General and the members of the More than a Market Awards Jury. Special thanks go to (in alphabetical order):

Christine Althauser Michael Mäder Bernhard Bartsch Birgit Riess Elisabeth Bauer Matthias Schäfer Stefan Bernhart Bettina Schön-Behanzin Titus von dem Bongart Lydia Schulz Lothar Grad Claudia Spahl Matthias Göbel Johanna Spee Martin Gronemeyer Yuki Tan Friederike Grubba Wu Wei Olivia Helvadjian Sigrid Winkler Jana Kumpf Brigitte Wolff Anika Laudien Oliver Ye Yang William Lu Richard Zhang

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Catalyst (2011), The Bottom Line: Corporate Performance and Women’s Representation on Finanz Nachrichten (2019), “Firmenich China, One of Only 4 Chinese Companies to be Boards (2004-2008), https://www.catalyst.org/research/the-bottom-line-corporate- EDGE Certified for Workplace Gender Equality”, https://www.finanznachrichten.de/ performance-and-womens-representation-on-boards-2004-2008/ nachrichten-2019-01/45814010-firmenich-china-one-of-only-4-chinese-companies-to- be-edge-certified-for-workplace-gender-equality-008.htm Catalyst (2012), Report: Expanding Work-Life Perspectives: Talent Management in China, https://www.catalyst.org/research/expanding-work-life-perspectives-talent-management- Forbes (2019), “Learn from The Gains of Chinese Women: An Interview with in-china/ Virginia Tan, President of Lean In China”, https://www.forbes.com/sites/ michaelcwenderoth/2019/03/08/learn-from-the-gains-of-chinese-women-an-interview- China Daily (2015), “Walmart Energizes Women-Led Businesses”, http://www.chinadaily. with-virginia-tan-president-of-lean-in-china/#6cf85d9b2fa6 com.cn/kindle/2015-11/12/content_22439679.htm Grosser, Kate (2009), “Corporate Social Responsibility and Gender Equality: Women as China Daily (2016), “女性群体带动中国O2O发展” (Women Driving O2O Growth in China), Stakeholders and the European Union Sustainability Strategy”, Business Ethics: A European http://www.chinadaily.com.cn/interface/yidian/1139302/2016-03-10/cd_23812205.html Review.

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